Making Tax Digital for landlords: what changes and when

18 October 2026 · 6 min read · Checked against GOV.UK 16 October 2026

Does MTD apply to landlords?

Yes. Making Tax Digital for Income Tax covers individuals with income from self-employment, property, or both. If you let out a flat, a house or a room and pay tax on the rent through Self Assessment, it applies to you once your qualifying income is over the threshold.

It doesn't cover properties held in a limited company, which pays Corporation Tax instead. Partnerships aren't included yet either.

What counts towards the threshold

Qualifying income is your gross property income: the rent you're entitled to, before any costs. A letting agent's fees, mortgage interest, repairs and insurance don't reduce it.

Example: one buy-to-let

Sarah lets a flat for £1,400 a month: £16,800 a year. After agent fees, repairs and mortgage interest her profit is around £6,000. Her qualifying income is still £16,800. That's under £20,000, so on these figures MTD doesn't apply to her yet.

Example: a couple who own a house together

Dev and Priya let a house for £30,000 a year and own it 50:50. Each has qualifying income of £15,000 from it. Neither needs MTD from that property alone.

Example: a self-employed electrician with a rental

Tom earns £22,000 from electrical work and £12,000 in rent. His qualifying income is £34,000, so he joins MTD on 6 April 2027 and sends updates for both his business and his property.

What changes in practice

Digital records: keep a record of rent received and costs paid, using software or a spreadsheet linked to software. Paper files and a shoebox of receipts won't be enough on their own.
Quarterly updates: four times a year you send HMRC a summary of your property income and costs so far. They're summaries, not tax bills. See quarterly updates explained.
One update per income type: UK property, foreign property and each self-employment are reported separately.
The year-end stays: you still finalise the year with a tax return by 31 January, and you pay tax on the same dates as now.

Getting ready

Add up your gross rent (your share, if jointly owned) plus any self-employment turnover for 2025 to 2026. Our MTD checker will tell you your start date.
Use one bank account for rent and property costs if you can. It makes digital records far easier.
Choose software that works with MTD. HMRC's software finder (opens in a new tab) lists the products HMRC recognises.
Sign up on GOV.UK (opens in a new tab) before your start date, unless HMRC writes to say it has signed you up.

Our full guide to Making Tax Digital covers exemptions, penalties and common myths too.

General guidance, not personalised tax advice. Rules can change: check GOV.UK or speak to an adviser about your situation.