Making Tax Digital for Landlords
Making Tax Digital for Income Tax (MTD for Income Tax) is a government initiative that changes how landlords report their income and expenses from sole trading and property.
Instead of submitting one Self-Assessment tax return each year, most landlords will need to start:
- Keeping digital records, using HMRC-approved software
- Sending quarterly updates to HMRC
- Submitting a final declaration at the end of the tax year
Not everyone will be affected by the changes right away, but most landlords will need to change the way they report at some point in the next few years.
Making Tax Digital for Income Tax will be introduced in stages
Stage 1: 6th April 2026
All landlords with gross income over £50,000 per year, from rental income and/or self-employment, must switch to the new system.
Stage 2: 6th April 2027
Threshold lowers to £30,000.
Stage 3: 6th April 2028
Threshold lowers to £20,000.
It’s based on your gross income
This is an important distinction. Your gross income is your total income before expenses. If you earn rental income and self-employment income, add them together. If the combined income is higher than the threshold, you need to switch to MTD for Income Tax.
It applies to you if ALL of the following are true:
- You’re a UK landlord, and you complete a Self-Assessment tax return
- You earn a qualifying income above the threshold (£50,000 in 2026)
- You file your tax as an individual, not through a limited company
It doesn’t apply to you if ANY of the following are true:
- You operate through a limited company
- Your income falls below the threshold (remember, the threshold drops each year, and you must combine rental and self-employment income)
- You haven’t got a National Insurance number
Make absolutely sure
Use this gov.uk tool to find out if/when you need to use MTD for Income Tax.
This doesn’t need to be stressful
Here’s our advice for how to navigate the change to Making Tax Digital for Landlords:
- Take action right away, to stay compliant
- Check your figures – find out when it will apply to you
- Use this government website to find HMRC-approved software
- Speak to your accountant, if you have one
- Move your records
If you need us, we’re here for you. Contact Homesure if you’d like our support with these changes.
