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MTD for Landlords

How Making Tax Digital for Income Tax applies to rental income, the thresholds that matter, and what changes for your record-keeping.

Short answer: landlords are covered by the same MTD for Income Tax thresholds as the self-employed — if your gross rental income (combined with any self-employment income) is over £50,000, you must join from 6 April 2026, dropping to £30,000 from 2027 and £20,000 from 2028.

How it applies to rental income specifically

MTD counts qualifying income as gross self-employment turnover plus gross rental income added together — not looked at separately. If you're a landlord with no self-employment income, it's simply your gross rents (before mortgage interest, letting agent fees, or any other expenses) that's tested against the threshold.

Furnished holiday lettings currently follow separate rules but are increasingly aligned with standard property income — check current status if this applies to you
Jointly owned property: each owner's share of gross rental income counts towards their own individual threshold, not the total
Multiple properties are combined as one UK property business for MTD purposes, so you don't need separate quarterly updates per property

Worked example

David rents out two buy-to-let flats generating £32,000 gross rent a year combined, and has no self-employment income. Because £32,000 is under the £50,000 threshold that applies from April 2026, he's not required to join yet — but once the threshold drops to £30,000 from April 2027 (based on his 2025/26 tax return figures), he'll be pulled in. Check exactly when with the MTD Income Threshold Checker, and see the tax impact with the Buy-to-Let Tax Calculator.

What quarterly updates mean for landlords

Each quarter you'll report rental income received and allowable expenses paid (mortgage interest relief works differently and is still handled via the Final Declaration, not the quarterly updates). This means genuinely digital, up-to-date records of rent received and expenses like repairs, insurance, letting agent fees, and service charges — not a shoebox of receipts sorted once a year.

Getting ready as a landlord

Start logging rental income and expenses digitally now with the free Expense Tracker
If you have both rental and self-employed income, remember they're combined for the threshold test — use the PAYE + Side Hustle Calculator style approach to see your combined position
Talk to your letting agent about digital statements if you currently receive paper summaries

MTD Income Threshold CheckerCheck your combined qualifying income Buy-to-Let Tax CalculatorWork out tax on rental profit MTD Quarterly DeadlinesKnow the exact reporting dates Landlord ToolsCompare property management software

Sources: GOV.UK — Making Tax Digital for Income Tax. This page is general guidance, not personalised tax advice.

Frequently asked questions

Does MTD apply per property or per landlord?▾

Per landlord — all UK rental properties are treated as one property business for MTD purposes, so you submit one set of quarterly updates covering all of them, not one per property.

What if I co-own a property with my spouse?▾

Each of you reports your own share of the gross rental income against your own individual MTD threshold, based on how the property income is split between you.

Do furnished holiday lets follow the same rules?▾

Furnished holiday lettings have historically had separate tax treatment; check current GOV.UK guidance for how they're being aligned with standard property income under MTD.

Does mortgage interest relief still work the same way under MTD?▾

Yes — the quarterly updates report income and expenses, but mortgage interest relief (given as a basic-rate tax reduction) is still applied at the Final Declaration stage, not adjusted quarter by quarter.