How does Making Tax Digital work for landlords?
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In short: Landlords with qualifying property income must keep digital records and file quarterly updates through compatible software, then a final end-of-period statement and annual declaration. The main rollout for landlords starts from April 2026 for those with total qualifying income above £50,000.
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Reviewed by Kaiser Khan
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires eligible landlords and self-employed people to keep digital records of income and expenses, send quarterly summary updates to HMRC, file an end-of-period statement, and complete a final declaration. It replaces the single annual Self Assessment return for in-scope income.
For landlords, the staged start dates from April 2026 depend on total qualifying income across all sources — not just rent. Those above £50,000 enter first; the threshold falls to £30,000 from April 2027 and £20,000 from April 2028. Jointly owned property income is split between owners for threshold purposes. Furnished holiday lettings and some other property income count as qualifying income.
You need MTD-compatible software that connects to HMRC. Allowable expenses — repairs, agent fees, mortgage interest relief as a basic-rate tax credit, and replacement of domestic items — must be recorded digitally. If you are below the threshold or only have small amounts of untaxed income, you may still use traditional Self Assessment until MTD applies to you.
Primary source: gov.uk/guidance/making-tax-digital-for-income-tax
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