Making Tax Digital for Landlords: an overview
From April 2026, the way many UK landlords report rental income to HM Revenue & Customs will change under the government’s Making Tax Digital for Income Tax (MTD ITSA) programme.This reform affects how records are kept and how often information is submitted, not the underlying tax rules themselves. However, it does introduce new reporting obligations for landlords above certain income thresholds.
This article sets out the changes at a high level and explains who they apply to.
Who Making Tax Digital applies to
MTD is being introduced in stages, based on gross qualifying income (before expenses).You will be required to comply if your total rental income plus any self-employment income exceeds:
For jointly owned properties, each owner is assessed individually, based on their share of the income.
Landlords with income below £20,000 will, for the time being, continue to file annual Self Assessment returns.
What changes under MTD
Where MTD applies, landlords will be required to:
The quarterly update periods and deadlines are:
Jointly owned properties
Where a property is owned jointly:
What this means in practical terms
Making Tax Digital does not change how rental income is taxed, but it does change how often and how formally information must be reported.
Landlords who currently rely on annual record-keeping may need to adjust their processes, particularly around:
What landlords should consider doing
Although the first phase does not begin until April 2026, landlords may wish to:
From April 2026, the way many UK landlords report rental income to HM Revenue & Customs will change under the government’s Making Tax Digital for Income Tax (MTD ITSA) programme.This reform affects how records are kept and how often information is submitted, not the underlying tax rules themselves. However, it does introduce new reporting obligations for landlords above certain income thresholds.
This article sets out the changes at a high level and explains who they apply to.
Who Making Tax Digital applies to
MTD is being introduced in stages, based on gross qualifying income (before expenses).You will be required to comply if your total rental income plus any self-employment income exceeds:
- £50,000 from 6 April 2026
- £30,000 from 6 April 2027
- £20,000 from 6 April 2028
For jointly owned properties, each owner is assessed individually, based on their share of the income.
Landlords with income below £20,000 will, for the time being, continue to file annual Self Assessment returns.
What changes under MTD
Where MTD applies, landlords will be required to:
- Keep digital records
Rental income and expenses must be recorded using HMRC-compatible software. Paper records or standalone spreadsheets will not be sufficient unless linked to approved systems. - Submit quarterly updates
Four updates must be submitted each tax year, summarising income and expenses. These are reporting submissions, not tax bills. - Submit a Final Declaration
At the end of the tax year, a Final Declaration confirms the overall tax position. This replaces the traditional Self Assessment return. - Pay tax by 31 January
The tax payment deadline remains unchanged.
The quarterly update periods and deadlines are:
- 6 April – 5 July → due by 7 August
- 6 July – 5 October → due by 7 November
- 6 October – 5 January → due by 7 February
- 6 January – 5 April → due by 7 May
Jointly owned properties
Where a property is owned jointly:
- each owner must submit their own quarterly updates
- each owner must submit their own Final Declaration
- there is no joint or combined submission
What this means in practical terms
Making Tax Digital does not change how rental income is taxed, but it does change how often and how formally information must be reported.
Landlords who currently rely on annual record-keeping may need to adjust their processes, particularly around:
- digital record systems
- frequency of bookkeeping
- coordination with accountants or advisers
What landlords should consider doing
Although the first phase does not begin until April 2026, landlords may wish to:
- confirm whether their income will exceed the relevant thresholds
- discuss MTD requirements with an accountant or tax adviser
- review how rental records are currently kept
- avoid leaving any system changes until shortly before the implementation date