landlords · tax · MTD
Do landlords need Making Tax Digital?
Bowker Accountants Team
When Making Tax Digital for Income Tax applies to landlords, the income thresholds, and what to put in place before the deadlines.
Making Tax Digital (MTD) for Income Tax is moving from VAT-registered businesses into Self Assessment. If you receive rental income, you may be in scope sooner than you expect.
Who is affected
MTD for Income Tax applies to landlords and self-employed people once their combined gross income from property and/or self-employment crosses set thresholds:
- Over £50,000 — from April 2026
- Over £30,000 — from April 2027
- Over £20,000 — from April 2028
Gross income means total rents (and self-employment turnover) before expenses — not taxable profit. A landlord with modest profit but high rent can still be caught.
If you only hold property through a limited company, Corporation Tax rules apply instead; MTD for Income Tax is about personal Self Assessment income.
What changes in practice
In scope means:
- Keeping digital records of income and expenses in compatible software
- Sending quarterly updates to HMRC
- Submitting a final declaration after the tax year
Spreadsheets alone will not meet the digital-links rules once you are in. Most landlords will use software such as Xero or FreeAgent, either themselves or with their accountant filing on their behalf.
What to do now
Check where your combined property and self-employment income sits against the thresholds for the next few years. If you are close, start cleaning up records and choosing software early — rushing into MTD in the first quarter you are required to file is avoidable stress.
We already help landlords move onto compatible software and handle quarterly updates once they are in scope. Speak to us if you want a clear answer on when MTD will apply to you.