FAQs

For the complete picture, start with the guide to Making Tax Digital for landlords. The answers below cover the specific points that tend to trip people up.

Is the MTD threshold gross or net?

Gross, before expenses. HMRC looks at your total rental income for the year, not the profit you keep after costs like mortgage interest, repairs or letting agent fees. So a landlord taking £52,000 in rent and spending £15,000 on the property is measured on the £52,000, which puts them over the £50,000 line and in the first wave from 6 April 2026. Check where you sit with the Am I In? calculator.

Does my pension, dividends or salary count toward the threshold?

No. Only two income sources count: UK property and self-employment. PAYE salary, dividends, pension income, and savings or investment income are all left out of the calculation. So a landlord with a £40,000 pension and £35,000 of rent counts as £35,000 for MTD, not £75,000. See how MTD affects landlords for the full breakdown.

I'm under £50,000, am I safe?

Only until the next wave. The £50,000 threshold is the first stage, but it steps down: over £30,000 from 6 April 2027, then over £20,000 from 6 April 2028. A landlord with £35,000 of rent sits outside the rules in 2026/27 but comes into scope from April 2027. Run your figure through the Am I In? calculator to see your exact start date.

Does MTD replace my Self Assessment return?

For those in scope, yes. You send four quarterly updates through the year and then submit a final declaration after the tax year ends, and together these replace the annual Self Assessment return. There is no separate end-of-period statement to worry about, that step no longer exists. See MTD deadlines and quarterly updates for what the new cycle looks like.

Do limited companies have to do MTD?

No. Making Tax Digital for Income Tax applies to individuals, including sole traders and individual landlords, not to limited companies. HMRC has not set a start date for companies, so if you hold property through a limited company you are not in scope for this. Your company still files its Corporation Tax return as normal.

What about jointly owned property?

Only your share counts toward your threshold. If you own a property with someone else, each owner looks at their own slice of the gross rent, not the full amount. For married couples and civil partners the default split is 50/50 unless you have made a Form 17 election, which means co-owners can fall into different waves. See how MTD affects landlords for joint ownership in detail.

What are the MTD quarterly deadlines?

The four quarterly update deadlines are 7 August, 7 November, 7 February and 7 May. Each update is cumulative, running from 6 April to the end of that quarter, so later updates build on the figures already sent. The final declaration is then due by 31 January after the tax year ends, so for 2026/27 that is 31 January 2028. See MTD deadlines and quarterly updates for the full timeline.

Is there free MTD software?

Yes, free MTD software exists, and HMRC's recognised list includes some free products. The catch is that free and generic tools usually miss the property-specific parts, things like joint-ownership splits, letting-agent statements and Section 24, so for most landlords free turns out to be a false economy. A genuinely simple case, one mortgage-free property and a few expenses, might be served by a free tool, but a mortgage, joint ownership or a small portfolio tends to outgrow it fast. Provestor is purpose-built for property and is a paid product, not free. Compare your options on the MTD software page.

What happens if I send an update late?

Late submissions use a points-based system. You collect a point for each late quarterly update or final declaration, and once you reach four points a £200 penalty applies, with a further £200 for each later late submission. For the first wave, 2026/27 is penalty-free, so the year is a chance to build the habit before points start to count. See MTD deadlines and quarterly updates for the penalty rules in full.

Do I pay tax more often under MTD?

No. Your payment dates do not change: payments on account stay at 31 January and 31 July, with any balancing payment due on 31 January. MTD changes how often you report to HMRC, not how often you pay. The extra activity through the year is sending updates, not settling tax.

If one of these answers raised a question about your own situation, two quick next steps cover most of them.