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Tax & compliance

Does Making Tax Digital apply to landlords?

By · Updated · 2 sources checked

Are you caught?

For the April 2026 phase, add gross rental income and self-employment turnover shown on your 2024/25 return. MTD applies if that total exceeded £50,000, subject to HMRC’s exemptions.

HMRC uses 2025/26 qualifying income above £30,000 for April 2027 and 2026/27 income above £20,000 for April 2028. A property portfolio is not automatically in scope; check the relevant return and exemptions.

What changes day to day

Instead of one property section on a January tax return, you keep digital records as you go, send HMRC a quarterly update of rental income and expenses through compatible software, and finish with a final declaration.

The tax payment dates do not change — only the reporting rhythm does.

Joint and part-owned property

HMRC assesses each person on their own share of the gross rental income, so a jointly owned buy-to-let is tested per owner.

Spouses splitting rent 50/50 may find neither crosses the threshold — or both do, once the £20,000 wave arrives in April 2028. Keep ownership records tidy.

Getting ready

Move rental finances into a dedicated bank account, pick MTD-compatible software (many landlord-specific tools exist alongside Xero, QuickBooks and FreeAgent), and decide who submits the quarterly updates — you or an accountant.

Firms offering landlord packages usually fold MTD into a fixed monthly fee.

People also ask

I have one buy-to-let and a full-time job — am I in MTD?

Only if your gross rent plus any self-employment income exceeds the threshold. Your PAYE salary does not count. One average rental property will often stay under £50,000, but the £30,000 and £20,000 waves in 2027 and 2028 change that for many landlords.

Do I still file a self assessment return?

Until your MTD start date, yes — the 31 January 2027 deadline applies for the 2025/26 tax year as normal. Once you are in MTD, the quarterly updates and final declaration replace the old annual return for your property and trading income.

Can my accountant file the quarterly updates for me?

Yes — landlords can authorise an agent to handle everything: software, bank feeds, quarterly submissions and the final declaration. Many firms now advertise landlord MTD packages at fixed monthly fees.

Sources

This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.