Expert Guide

Making Tax Digital for landlords

How will MTD affect landlords?

Over 1.4 million landlords will be impacted by Making Tax Digital legislation when it comes into effect in April 2026. That's more than half of all landlords! In this chapter, we answer the top questions we’ve been asked as property accountants about how MTD will affect landlords.

The mandatory use of MTD software is being phased in from April 2026, rather than April 2024 for landlords and self-employed individuals. Learn more >

Making Tax Digital (or MTD as it’s known) is on its way and it’s going to mean big changes for the majority of landlords who submit self assessments.

If you're in scope for Making Tax Digital for Income Tax, you’ll need to use digital accountancy software to keep track of your income and expenses, and to make quarterly MTD submissions.

This applies to income from rental properties or self-employment: £50,000 a year from April 2026, and those earning over £30,000 from April 2027.

The biggest change for landlords is that instead of submitting a yearly Self Assessment, you’ll send an update from your software every quarter to HMRC.

Will all landlords be affected by MTD?

Making Tax Digital is a big change and it impacts all landlords with personally owned properties earning more than £50,000 a year from rental properties or self-employment from 2026, and those earning £30,000 or more from 2027.

Property income in scope for MTD includes:

  • Residential buy to lets

  • HMOs and student lets

  • Furnished holiday lets (FHL)

  • Commercial property

  • Non-UK property, such as a holiday apartment abroad

It’s important to note that this is £50,000 of rental income, so gross profit before deducting your expenses, rather than net profit.

I own rental property in a partnership. Will MTD affect me?

Partnerships will need to sign up to MTD at some point in the future. HMRC has said it will announce dates for other types of partnerships, including LLPs and those with corporate partners, at a later date.

I’m a landlord that’s registered as a limited company? Will MTD affect me?

If you own your properties in a limited company, you don’t need to worry about MTD for Income Tax just yet - this is set to be introduced by HMRC after 2026.

Does MTD mean you need to pay tax four times a year?

No. Whilst you’ll need to submit quarterly updates four times a year, how you pay self-assessed income tax is not changing. This means you’ll continue to either make a single annual payment before 31st January, or two payments on account throughout the year.

Is the MTD threshold £50k gross or net?

It’s important to note that the MTD threshold is £50,000 of rental income, so gross profit before deducting your expenses, rather than net profit. Essentially, if you’re earning more than £4,166.66 a month in rent, you’ll be in scope for MTD. If you have income from self-employment in addition to rental income, this will also count towards your MTD total.

How does Making Tax Digital work for joint landlords?

If the rental income is from a jointly owned property, this is based on the share of ownership - i.e. 50% if both parties have equal shares in the property. If your share of the rental income is over £50,000, then you'll be in scope for MTD from April 2026.

In summary, if you currently complete a Self Assessment for your property income, and you earn over £50,000 from property or self-employment, you’re going to need to switch to use digital accountancy software to make quarterly MTD submissions from April 2026.

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