MTD for landlords: a 2026 UK property guide
Making Tax Digital for Income Tax (MTD ITSA) has changed how landlords report rental income to HMRC. Since 6 April 2026, landlords whose 2024-25 qualifying income(gross property income plus any self-employment income) was above £50,000 must keep digital records and submit quarterly updates. Here's what that means in practice.
By Mehmet Demir · Last reviewed: 2 May 2026 · Source: HMRC · Methodology
Bottom line
You must use MTD for Income Tax if you're a UK landlord and your gross property income (plus any self-employment income) crosses these thresholds:
- 2024-25 income above £50,000: live since 6 April 2026.
- 2025-26 income above £30,000 (and not already in the April 2026 group): mandatory from 6 April 2027.
- 2026-27 income above £20,000 (and not already in an earlier group): mandatory from 6 April 2028.
- Up to £20,000 in 2026-27: not currently in scope.
How to prepare for MTD for Income Tax as a landlord
A practical sequence for getting ready before your mandatory MTD start date.
- 1
Confirm your start date
Use the eligibility checker to confirm whether you are already in scope (2024-25 qualifying income above £50,000, live since April 2026), join in April 2027 (2025-26 income above £30,000), or April 2028 (2026-27 income above £20,000), based on gross property and self-employment income.
- 2
Open a dedicated property bank account
Separating rent and expenses from personal finances makes digital record-keeping far simpler and reduces categorisation errors.
- 3
Choose MTD-compatible software
Compare Hammock, Landlord Studio, FreeAgent, Xero, and QuickBooks. Look for open-banking feeds, mileage tracking, and quarterly-update support.
- 4
Connect bank feeds and import historic data
Pull at least the last full tax year of transactions in. This makes your first quarterly update accurate and gives you a baseline to compare against.
- 5
Run a practice quarter
Categorise income and expenses for one quarter as if you were submitting. This catches workflow gaps before the live submission.
- 6
Sign up with HMRC and submit your first update
Sign up via your HMRC online account, authorise your software, and submit your first quarterly update in the first two weeks of the window, never on the last day.
How is the threshold calculated?
HMRC looks at gross income, that is, rent received before deducting any allowable expenses such as mortgage interest, repairs, agent fees, or insurance. If you also run a sole-trader business, HMRC adds your self-employment turnover and your gross rental income together. Crossing the combined threshold puts you into MTD for Income Tax even if your property income alone would be below it.
For jointly owned properties, each owner is assessed individually on their share. A couple whose 2025-26 rent was £80,000 jointly (split 50/50) would each report £40,000, placing each of them in the April 2027 group (over £30,000), not the April 2026 group, because neither share crosses £50,000.
Source: HMRC: Check if you'll need to sign up for MTD for Income Tax ↗
What you'll need to do
- Keep digital records. Spreadsheets are acceptable only if combined with bridging software that connects them to HMRC's API. Most landlords switch to dedicated software instead.
- Use HMRC-recognised software. Check the official list. Software for landlords includes Hammock, Landlord Studio, FreeAgent, Xero, and QuickBooks.
- Submit four quarterly updates. Each quarter, summary income and expense totals are sent to HMRC. The standard quarter ends are 5 July, 5 October, 5 January, and 5 April.
- Submit your tax return through MTD-compatible software. By 31 January after the end of the tax year, you submit your tax return using software that works with MTD, including any adjustments for reliefs and allowances. The submission mechanism changes; Self Assessment as a legal obligation does not disappear.
Common pitfalls
- Mixing personal and rental finances. A separate bank account makes digital record-keeping far easier.
- Missing the "gross income" trigger. Landlords frequently assume net rental income is what counts. It isn't.
- Leaving software setup to the last quarter. Allow at least one full quarter to test before your mandatory start date.
FAQs
Do landlords have to use Making Tax Digital?v
Is the £50,000 threshold based on gross or net rental income?v
What do landlords need to do under MTD for Income Tax?v
Are jointly owned properties treated differently?v
What software works for landlords?v
What happens if I miss a quarterly update?v
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Start the check →This guide is general information, not professional tax advice. Always verify against HMRC's official guidance or speak to a qualified accountant.