Information GuideMTD for Landlords

What MTD for Income Tax means for landlords: who must join, when you start, quarterly updates, and year-end submissions. Applies to England & Wales.

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Last reviewed: September 2026 - sources ↓

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Who Must Use MTD (Current HMRC Position)

Current HMRC position on Making Tax Digital requirements for landlords

Individuals

Individuals with self-employment and/or property "qualifying income" > £20,000 is being brought in phases.

Start Dates

Start dates depend on your threshold year: >£50k (started 6 Apr 2026), >£30k (from 6 Apr 2027), >£20k (from 6 Apr 2028 - legislation being introduced to confirm the start date).

Partnerships

Partnerships: timeline to follow (not yet set).

Important Note: All information provided is for general guidance only. Always seek formal advice from qualified professionals.

What You Must Do Under MTD

Key requirements for compliance with Making Tax Digital

Digital Records

Keep digital records for each income source (self-employment, UK property, foreign property/FHL if applicable).

Quarterly & Annual

Send quarterly updates from software; then submit the annual return (final declaration) via the software.

Compatible Software

Use MTD-compatible software; spreadsheets are allowed only with digital links via software.

Software Requirements

What you need to know about choosing compatible software

Compatible Software

Must be HMRC-approved MTD software. Spreadsheets need bridging software with digital links - they cannot be used standalone.

Digital Records Required

All property income and expenses must be recorded digitally per income source, including UK property, self-employment, and foreign property.

Quarterly Submissions

Software must be capable of sending quarterly updates and the final declaration (annual tax return) directly to HMRC.

Find compatible MTD software on GOV.UK

Quarterly Update Schedule (Standard)

Standard quarterly reporting periods and deadlines

Q1

Q1 Period

Ends:5 Jul
Deadline:7 Aug
Q2

Q2 Period

Ends:5 Oct
Deadline:7 Nov
Q3

Q3 Period

Ends:5 Jan
Deadline:7 Feb
Q4

Q4 Period

Ends:5 Apr
Deadline:7 May

Calendar Quarters Option

You may elect calendar quarters (1 Apr–30 Jun etc.); deadlines remain 7 Aug/7 Nov/7 Feb/7 May.

Early Filing

Updates can be filed up to 10 days early if the period is complete.

Key Deadline Dates

Submission deadlines for compliance with Making Tax Digital

7 Aug

Q1 Deadline

7 Nov

Q2 Deadline

7 Feb

Q3 Deadline

7 May

Q4 Deadline

Qualifying Income at a Glance

Understanding how HMRC calculates your qualifying income for MTD entry

Key Definition

"Qualifying income" is the total of self-employment + property income used to assess entry.

HMRC Review Process

HMRC reviews your Self Assessment to notify when you must start. You remain responsible to check.

Out of Scope

If your qualifying income is £20,000 or less, you are currently out of scope.

Income Breakdown Examples

Example 1: In Scope

Self-employment income:£35,000
UK property income:£18,000
Total qualifying income:£53,000

Above £50k threshold - MTD required from 6 Apr 2026

Example 2: Currently Out of Scope

Self-employment income:£8,000
UK property income:£11,000
Total qualifying income:£19,000

Below £20k threshold - Currently out of scope

Exemptions (Selected)

Key exemptions from Making Tax Digital requirements

Digital Exclusion

Digital exclusion (not reasonable to use software) and certain automatic exemptions (e.g., trustees, personal reps).

Companies Excluded

Companies are not in MTD for Income Tax (separate corporation tax regime).

Applying for an Exemption

If you believe you qualify for an exemption from Making Tax Digital

If you are not automatically exempt but believe you qualify for digital exclusion or another exemption, you must apply to HMRC directly. Exemptions are not automatic unless you fall into one of the listed categories (trustees, personal representatives, no National Insurance number before the start of the tax year, certain SA supplementary page users).

If you are unsure whether an exemption applies to your situation, speak to your tax adviser. We provide information only - we do not make exemption applications on your behalf.

Check exemptions on GOV.UK

EXAMPLE ONLY - ILLUSTRATIVE, NOT A TOOL

Example Timelines (Illustrative Only)

Illustrative examples only - not a calculation tool

£50k+ Threshold

Qualifying Income 2024/25:£50k
MTD Start Date:6 Apr 2026 (now in effect)
First Update Due:7 Aug 2026 (passed)

£30k+ Threshold

Qualifying Income 2025/26:£30k
MTD Start Date:6 Apr 2027
First Update Due:7 Aug 2027
Update - September 2026: MTD for Income Tax is now live for qualifying income over £50,000; the first quarterly update was due 7 August 2026. HMRC has confirmed a soft landing for 2026/27 - no penalty points for late quarterly updates this tax year, though penalties still apply for late tax returns and late payment. From September 2026, HMRC is also beginning to automatically sign up in-scope landlords who have not yet enrolled - if you are in the first cohort, check your HMRC online account. Source: GOV.UK.

FAQs

Common questions about MTD for landlords

Do I still file a Self Assessment return?

Yes - via your MTD software by 31 January after the tax year (final declaration).

Are FHLs separate?

UK property and foreign property are separate "businesses"; FHL rules may require separate tracking for adjustments.

Can I keep spreadsheets?

Yes, if connected by digital links to compatible software for submissions.

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How to Get Started (Simple Steps)

Simple steps to prepare for Making Tax Digital

1

Check Income

Check your qualifying income for 2024/25 and 2025/26.

2

Choose Software

Choose compatible software and set quarterly cadences.

3

Prepare Records

Prepare digital records per source (self-employment, UK/foreign property).

4

Get Support

Use the enquiry form for expert guidance.

Need the records side handled? Our landlord bookkeeping service keeps MTD-ready digital records, or learn to run them yourself with 1-to-1 training.

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Sources - HMRC / GOV.UK (checked September 2026)

Reference numbers in the text above correspond to these sources.