MTD for landlords: what property owners must do from April 2026

In short: Landlords must use MTD for Income Tax when gross property income plus any gross self-employment turnover exceeds the phased thresholds: over £50,000 from 6 April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. The test uses qualifying income, not rental profit after expenses (GOV.UK).

Do landlords have to use MTD?

Landlords have to use MTD if their gross property income plus any gross self-employment income is above the relevant threshold. Under Making Tax Digital, the threshold test uses qualifying income before expenses, not rental profit after costs.

For the general scope and exemptions, see who has to use MTD for Income Tax.

How does jointly-owned property work?

Jointly-owned property counts by your share of the income toward your own qualifying income. Joint landlords may report only their share of income quarterly and report expenses as a single annual figure rather than quarterly (GOV.UK).

The key point is that the total property income is not tested against each owner as if each received all of it. Each owner tests their own qualifying income.

What records must landlords keep each quarter?

Landlords must keep digital records and send quarterly totals for income and expenses by category unless an easement applies. If turnover is under the £90,000 VAT threshold, total income and total expenses may be reported instead, but residential finance costs are always reported separately.

Quarterly updates are cumulative year-to-date submissions, so corrected totals can roll forward into the next update. See MTD quarterly updates: dates, deadlines and what to send for the filing calendar.

Is foreign property included?

Foreign property is included for UK residents, and it is treated as a separate property business alongside UK property. That means UK-resident landlords need to consider UK property income, foreign property income, and any self-employment turnover when checking qualifying income.

The fact pack does not say that non-UK residents with foreign property are included. For UK residents, however, both UK and foreign property can be in scope.

How can Taxley help landlords with MTD?

Taxley MTD handles digital records, manual entry or CSV import, cumulative quarterly updates you review before submitting, in-year tax estimates, and the final declaration. It supports self-employment plus UK and foreign property income, which are exactly the income types MTD for Income Tax mandates. It is free during beta and launching soon; visit the MTD Income Tax page for updates.

Frequently asked questions

Does MTD apply to rental profit or gross rent?

MTD thresholds use gross property income before expenses, combined with any gross self-employment turnover.

Do joint landlords report the whole rent each?

No. Joint landlords may report only their own share of income quarterly. Expenses can be reported as a single annual figure.

Is foreign property income included in MTD?

Yes, for UK residents. Foreign property is treated as a separate property business alongside UK property.

Do landlords pay tax every quarter under MTD?

No. Quarterly updates are reporting obligations. Tax payment deadlines are unchanged: 31 January for the balancing payment and 31 January and 31 July for payments on account.