Making Tax Digital for landlords: the complete 2026 guide
Making Tax Digital for Income Tax (often written MTD IT or MTD ITSA) is the biggest change to how landlords report tax since Self Assessment was introduced. It began on 6 April 2026, and HMRC estimates 864,000 landlords and sole traders were brought into the system in the first wave alone.
This guide covers who is affected and from when, what you actually have to do, the deadlines, and the mistakes to avoid — in plain English.
Who does MTD apply to, and from when?
Your start date depends on your gross income — that means total rent received plus self-employment turnover, before deducting any expenses — as reported on your Self Assessment return:
| Gross property + self-employment income | Measured on | MTD applies from |
|---|---|---|
| £50,000 or more | 2024–25 return | 6 April 2026 (already live) |
| £30,000 – £49,999 | 2025–26 return | April 2027 |
| £20,000 – £29,999 | 2026–27 return | April 2028 |
What you actually have to do
MTD changes two things: how you keep records, and how often you report.
1. Digital records
You must record income and expenses digitally, as they happen, in software. Paper records and receipts in a drawer no longer satisfy the rules. Spreadsheets can still be used, but only when connected to HMRC through "bridging software" that files digitally — in practice, most landlords find dedicated software simpler. HMRC publishes a list of recognised software on GOV.UK; landlord-focused options include Landlord Studio, Hammock and FreeAgent.
2. Quarterly updates
Instead of one annual return, you send HMRC a summary of income and expenses every quarter, plus a final year-end declaration. The quarterly deadlines are the same every year:
- 7 August — for the quarter 6 April to 5 July
- 7 November — for 6 July to 5 October
- 7 February — for 6 October to 5 January
- 7 May — for 6 January to 5 April
If you have both a property business and self-employment, you file separate updates for each — eight filings a year.
Not sure if MTD applies to you?
Answer 6 plain-English questions and get your start date, your deadlines, and a personalised action plan — free, in about 90 seconds.
Run the free MTD checkWhat happens if you get it wrong?
Late quarterly updates earn penalty points, and enough points convert into fines. For the first year HMRC is applying a light touch — no penalty points for late quarterly updates in year one — but the year-end declaration keeps full penalties, and the underlying requirement to keep digital records applies from day one. We cover the penalty system in detail in what happens if you miss an MTD deadline.
Five practical steps to get ready
- Find your gross income figure on your last Self Assessment return and match it to the table above. That's your start date.
- Choose software early. Free trials are standard; switching mid-year is painful. If an accountant files for you, ask whether they handle quarterly updates and what it costs.
- Put the four deadlines in your calendar with a reminder two weeks before each.
- Log as you go. Fifteen minutes a week keeps records compliant. Reconstructing a quarter in its final week is how most penalties will happen.
- Keep an eye on the thresholds. If your income is near £30,000 or £20,000, you may be pulled in at the next phase — being ready early costs nothing.
Frequently asked questions
Does MTD change how much tax I pay?
No. It changes how and how often you report, not the tax rates or allowable expenses.
I jointly own a property — whose income counts?
Your share of the gross rent counts towards your own threshold. Each joint owner is assessed individually.
Can I be exempt?
Limited exemptions exist (for example, where it's not reasonably practicable to use digital tools due to age, disability, location or religion). You must apply to HMRC — exemption is not automatic.