Quick answer: Landlords join Making Tax Digital for Income Tax if their combined self-employment and property income, before expenses, is over £50,000 (from 6 April 2026), over £30,000 (from 6 April 2027) or over £20,000 (from 6 April 2028). Once in, you keep digital records and send four quarterly updates a year through HMRC-recognised software. The test uses gross rent, not profit.
When does it apply to a landlord?
The threshold is measured on qualifying income: your self-employment income and your UK and overseas property income, added together, before expenses. Rent minus costs is not what counts, so a landlord with £55,000 of rent and a small profit can still be over the line.
| Qualifying income over | Measured on your | Start using MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 tax return | 6 April 2026 |
| £30,000 | 2025 to 2026 tax return | 6 April 2027 |
| £20,000 | 2026 to 2027 tax return | 6 April 2028 |
Not sure which row you fall in? Our MTD checker works it out from your income figures.
Jointly owned property
MTD applies to individuals, not to a property. If you own a let with a spouse or someone else, only your share of the income counts towards your threshold. One owner can be in MTD while the other, with lower total income, is not. Each owner in scope sends their own updates for their own share; there is no joint return. If you also have self-employment income, add it to your property income when you check the threshold.
What records to keep
From your start date you need digital records of each property transaction, kept as you go through the year:
- Income: the date and amount of rent and other property income.
- Expenses: the date, amount and type of each cost, using the same headings as the SA105 property pages (rent, rates and insurance; repairs and maintenance; finance costs; professional fees; services; other).
- Mortgage interest: residential finance costs are kept separate from other expenses.
If your property income is under £90,000 you can report expenses as one consolidated total in your quarterly updates instead of by category. A spreadsheet can be your digital record. The MTD Spreadsheet Maker builds one with income, expense categories (including SA105 for property) and quarterly totals, in your browser with nothing uploaded.
Quarterly updates
You send four updates a year, due by 7 August, 7 November, 7 February and 7 May. Each one summarises your income and expenses so far for the tax year (6 April to 5 July, then to 5 October, 5 January and 5 April). An update is not a tax return and does not give you a tax bill. After the year ends you also send a final declaration by 31 January. HMRC is not issuing penalty points for late quarterly updates in 2026 to 2027; after that, late updates collect points and four points means a £200 penalty (see the MTD penalties guide). The nearest deadline is covered in the 7 November guide.
How do I send the updates?
A spreadsheet cannot send anything to HMRC itself. You need HMRC-recognised software: either accounting software that does everything, or bridging software that sends the totals from your spreadsheet. HMRC’s list of compatible software is on GOV.UK. Altto does not send updates to HMRC.
Check before you rely on this
Rules, exemptions and dates can change, and your own situation (overseas property, a partnership, being exempt) may differ. Confirm the details on GOV.UK: search for “Check if you can sign up for Making Tax Digital for Income Tax”. This guide is general information, not tax advice.
Frequently asked questions
Do landlords have to use Making Tax Digital?
Is the threshold based on rent or profit?
What if I own a property jointly?
Do I add self-employment income to my rental income?
How often do landlords send updates?
Can I keep my rental records in a spreadsheet?
Need landlord records in order?
Make an MTD-ready income and expense spreadsheet with SA105 property categories. Nothing is uploaded.
Altto is not affiliated with HMRC. This is general information, not tax advice.