# Does Making Tax Digital apply to landlords?

Pick My Accountant (https://pickmyaccountant.co.uk/answers/mtd-for-landlords/): Does Making Tax Digital apply to landlords? — Quick answer. Yes — Making Tax Digital for Income Tax applies to landlords. Rental income counts toward the £50,000 qualifying-income threshold from 6 April 2026, with the threshold falling to £30,000 in April 2027 and £20,000 in April 2028. Pick My Accountant explains the digital records and quarterly updates landlords must make.

## Key facts

- Gross rental income counts toward the MTD threshold — before expenses
- Over £50,000 means MTD from 6 April 2026; £30,000 from April 2027; £20,000 from April 2028
- Landlords send quarterly updates plus a final declaration instead of the old property pages
- MTD-compatible software is mandatory — paper records no longer comply
- Until your start date, normal self assessment continues: 31 January 2027 for 2025/26

## Are you caught?

Add your gross rental income to any self-employment turnover you have. If the combined figure tops £50,000, MTD for Income Tax applies from 6 April 2026. The same test then runs at £30,000 from April 2027 and £20,000 from April 2028, which will pull in most portfolio landlords and many accidental ones.

## 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.

## FAQs

**Q: I have one buy-to-let and a full-time job — am I in MTD?**
A: 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.

**Q: Do I still file a self assessment return?**
A: 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.

**Q: Can my accountant file the quarterly updates for me?**
A: 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.

Updated: 2026-07-17

Source: https://pickmyaccountant.co.uk/answers/mtd-for-landlords/