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: When you need to use Making Tax Digital for Income Tax).
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. The threshold is more than £50,000 from 6 April 2026, falling to £30,000 from April 2027 and £20,000 from April 2028.
| When MTD starts | Qualifying income threshold | Tax return used to assess status |
|---|---|---|
| From 6 April 2026 | More than £50,000 | 2024-25 return |
| From April 2027 | More than £30,000 | 2025-26 return |
| From April 2028 | More than £20,000 | 2026-27 return |
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: Digital record-keeping rules for Making Tax Digital). In the example below, two owners splitting £60,000 of gross rent 50:50 each have £30,000 of qualifying income.
| Example | Result |
|---|---|
| Two joint owners split £60,000 total gross rents 50:50 | £30,000 gross property income each |
| April 2026 threshold | Not mandated from April 2026 because the threshold is more than £50,000 |
| April 2027 threshold | Mandated from April 2027 because the threshold is more than £30,000 |
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.
Non-UK residents are treated differently: GOV.UK says they count only UK property income and self-employment income declared on their UK Self Assessment return, so their foreign property income does not count towards qualifying income (GOV.UK: work out your qualifying income).
How can Taxley help landlords with MTD?
Taxley's Making Tax Digital service for sole traders and landlords isn't available yet, so you can't use Taxley to keep MTD records or send quarterly updates today. We're building it to cover digital records, manual entry or CSV import, quarterly updates you review before sending, and the final declaration, for self-employment and UK and foreign property income.
Until it opens, choose a product from HMRC's list of MTD-compatible software. The MTD Income Tax page shows our progress.
Frequently asked questions
Does MTD apply to rental profit or gross rent?
Gross rent. MTD thresholds use gross property income before expenses, combined with any gross self-employment turnover, so deducting costs does not bring you under the threshold. From 6 April 2026 the test is qualifying income of more than £50,000 (GOV.UK: When you need to use Making Tax Digital for Income Tax).
Do joint landlords report the whole rent each?
No. Each joint owner counts only their share of the income towards their own qualifying income, and may report only that share quarterly. Expenses can be reported as a single annual figure rather than quarterly (GOV.UK: Digital record-keeping rules for Making Tax Digital).
Is foreign property income included in MTD?
Yes, for UK residents. Foreign property is treated as a separate property business alongside UK property. Non-UK residents count only UK property income and self-employment income declared on their UK return.
Does MTD for Income Tax apply to a property company?
No. A limited company pays Corporation Tax, not Income Tax, on its rental profits, so MTD for Income Tax doesn't apply to it. The company files a CT600 instead — see Corporation Tax for a property company.
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.
Update history
- Corrected: Taxley's MTD service isn't available yet; links HMRC's software list
- Answers, lists and FAQs expanded
- Replaced an internal research note with GOV.UK rules for non-residents
Spotted something out of date? See how we handle corrections.
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Taxley MTD isn't available yet
We're building Taxley's Making Tax Digital service for sole traders and landlords. Until it opens, use software from HMRC's list of MTD-compatible products.
See Making Tax Digital