Making Tax Digital (MTD) for Income Tax began rolling out to UK landlords on 6 April 2026.

For the 2026-27 tax year, the rules apply to sole trader landlords whose combined gross income from property and self-employment exceeded £50,000 in the 2024-25 tax year.

In this guide, we’ll explain how MTD works, who needs to comply, and the key thresholds and deadlines to know. You’ll also find practical tips to help you prepare for the changes. It’s one of several important updates for landlords in 2026, alongside the Renters’ Rights Act.

1. What is Making Tax Digital (MTD) for landlords?
2. When does Making Tax Digital come into force for landlords?
3. Check your MTD start date: OpenRent’s landlord registration checker
4. What are quarterly updates and when do you need to submit them?
5. How to register for MTD for Income Tax
6. Penalties for missing MTD deadlines
7. How landlords can prepare for the changes
8. How OpenRent simplifies digital record-keeping for landlords

OpenRent’s Rent Now automatically logs every rent payment, giving you a clear digital audit trail of your income for tax reporting.

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What is Making Tax Digital (MTD) for landlords?

Making Tax Digital (MTD) is the government’s move towards digital tax reporting. If you’re a landlord who owns property as an individual rather than through a limited company, you may need to follow the new rules if your qualifying income exceeds the relevant threshold.

Under MTD for Income Tax, you’ll need to keep digital records of your income and expenses and send updates to HMRC every quarter using compatible software.

Rather than relying solely on an annual Self Assessment return, you’ll submit a digital update within a month of each quarter ending. You’ll also need to send a Final Declaration by 31st January, covering your other taxable income and confirming your overall tax position for the year.

When does Making Tax Digital come into force for landlords?

Making Tax Digital (MTD) is being introduced in stages, depending on how much qualifying income you receive from rental properties and self-employment. The thresholds are based on your gross income, before expenses and tax are deducted, and the rules apply to individual landlords rather than limited companies.

The planned start dates are:

• 6th April 2026: Landlords with qualifying income above £50,000 in the 2024-25 tax year.
• 6th April 2027: Landlords with qualifying income above £30,000.
• 6th April 2028: Landlords with qualifying income above £20,000.

When do you need to get ready?

If your income meets the relevant threshold, you’ll need to have MTD-compatible software ready for the tax year when the rules start applying to you.

HMRC uses information from your most recent tax return to work out who needs to join MTD for Income Tax. For the first group, for example, it used 2024-25 tax returns to identify landlords who needed to start using MTD from April 2026. HMRC also wrote to taxpayers it identified as needing to join before the first start date.

You might also be interested in…

• Awaab’s Law Explained: A Guide for Private Landlords
• All You Need to Know About the ‘Register Your Rental Property’ Service and Landlord Ombudsman
• Making Tax Digital (MTD) for Landlords: How Does It Work?
• Free Assured Periodic Tenancy Agreement (APT Rental Contract)
• Joint Tenancy Guide: Understanding Joint and Several Liability

What income counts towards the threshold?

HMRC looks at your gross qualifying income, before you deduct expenses or tax. This includes income from UK and foreign rental properties, as well as turnover and other income from self-employment.

More specifically, qualifying income can include:

• UK rental income, including income from furnished holiday lets.
• Foreign property income, including rental income and reverse premiums.
• Self-employment income, including turnover and other business income, but excluding income from fostering or being a shared lives carer.
• Other property-related income, such as payments received for granting a lease or reverse premiums.

Employment income taxed through PAYE and pension income don’t count towards the threshold. Neither does rental income from properties owned by a limited company, as these fall under Corporation Tax instead.

If you own a rental property jointly with someone else, you generally count only your share of the income. For example, if a property generates £80,000 in annual rent and you own it equally with another landlord, your share would be £40,000. If you have no additional qualifying income from self-employment or other sources, you’d be below the £50,000 threshold for April 2026, but above the £30,000 threshold for April 2027.

What is not included?

Not all income counts towards the Making Tax Digital (MTD) for Income Tax threshold. The following types of income are excluded:

• Employment income taxed through PAYE
• Pension income
• Income from partnerships
• Dividends, including those paid by a company you own
• Interest earned on savings

How to check whether your income meets the MTD threshold

You can use the government’s online checker to find out whether your qualifying income is above the threshold for Making Tax Digital (MTD) for Income Tax.

For a breakdown of what counts, HMRC’s guidance on qualifying income explains which types of property and self-employment income are included in detail.

Check your MTD start date: OpenRent’s landlord registration checker

Use OpenRent’s calculator to check which tax year Making Tax Digital starts for you, based on your qualifying income.

Making Tax Digital (MTD) Registration Checker for Landlords

Check when you are legally required to start keeping digital records and submitting quarterly MTD updates for Income Tax.

1. Total monthly rent received (£):

The total rent charged each month across the property, before agent fees or expenses are deducted. I own this property jointly with someone else

Your ownership share (%):

Enter your percentage share of the rental income (defaults to 50% for equal joint owners).

2. Annual gross sole-trader income (£):

If you run a self-employed business alongside being a landlord, enter your annual gross turnover here (leave blank if none). Don’t include PAYE salary. What other income counts towards the threshold?

HMRC looks at your gross qualifying income, before you deduct expenses or tax. More specifically, qualifying income can include:

• UK rental income, including income from furnished holiday lets.
• Foreign property income, including rental income and reverse premiums.
• Self-employment income, including turnover and other business income, but excluding income from fostering or being a shared lives carer.
• Other property-related income, such as payments received for granting a lease or reverse premiums.

Total Qualifying HMRC Income:

£0.00 HMRC combines your annual property and self-employment income to check your MTD threshold. Mandatory Start Date – Applicable Tax Year –

MTD Status: –

Enter your income above to check your compliance deadline.

What are quarterly updates and when do you need to submit them?

With Making Tax Digital (MTD) for Income Tax, you’ll need to report your rental income and expenses to HMRC every three months through compatible software. These submissions are called quarterly updates.

Unlike a tax return, a quarterly update doesn’t require you to make tax adjustments before submitting it. HMRC also won’t see your individual records, such as receipts and invoices, as these stay within your software.

Each update covers your income and expenses from the beginning of the tax year to the end of the relevant quarter. This means the figures build up throughout the year, rather than covering only the latest three months. For example, your second update will include figures from both the first and second quarters.

Your MTD software should help you prepare and submit each update. If your accounting year follows the standard tax year, from 6th April to 5th April, the deadlines are:

Period coveredSubmission deadline6th April to 5th July7th August6th April to 5th October7th November6th April to 5th January7th February6th April to 5th April7th May (the following tax year)

These are the final dates for submitting each update, so you don’t have to wait until the deadline. You can submit it any time after the relevant period ends, as long as it’s received by the date shown above.

Track monthly rental payments in real time and export income records effortlessly before your MTD deadlines arrive.

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How do you submit your final tax return under MTD?

You’ll still need to finalise your tax position by 31st January after the end of each tax year. Under Making Tax Digital (MTD) for Income Tax, this is done through a final declaration rather than a traditional Self Assessment return.

If you’re within MTD, you’ll need to submit your final declaration using MTD-compatible software. You won’t be able to use HMRC’s usual online filing service to report income that falls outside the MTD rules.

Your software must therefore cover more than just your rental income. It will also need to let you report other income and relevant details, such as pension contributions and capital gains, so you can confirm your overall tax position for the year.

How to register for MTD for Income Tax

Being registered for Self Assessment doesn’t mean you’re automatically enrolled in Making Tax Digital (MTD) for Income Tax. You’ll need to sign up separately, either yourself or through your accountant.

You can register through GOV.UK using your Government Gateway or GOV.UK One login details. Before you start, you must already be registered for Self Assessment and have filed a tax return within the past two years.

You’ll also need to confirm which tax year you’ll begin using MTD. If you started receiving property income within the last two tax years, have the date you began receiving it ready.

Depending on your circumstances, you may need to verify your identity or answer additional security questions as part of the process.

Once you’ve registered, you can connect your MTD-compatible software to HMRC. This usually involves selecting an authorisation option in your software, which takes you to GOV.UK to log in and approve the connection.

Do new landlords need to use MTD?

If you’re becoming a landlord for the first time, you won’t need to start using Making Tax Digital (MTD) for Income Tax straight away.

For example, if you inherit a property or buy your first buy-to-let, you’ll only need to join MTD after submitting your first Self Assessment tax return that includes your rental income.

Penalties for missing MTD deadlines

The government plans to introduce a points-based penalty system for late quarterly updates from the 2027-28 tax year. If you’re using Making Tax Digital (MTD) for Income Tax in 2026-27, you won’t be fined for missing a quarterly update deadline.

From the 2027-28 tax year onwards, you’ll receive a penalty point each time you miss a deadline for a quarterly update or tax return.

Once you’ve accumulated four points, you’ll face a £200 fine. You’ll then be charged another £200 for each subsequent missed submission deadline.

How landlords can prepare for the changes

Even if your start date isn’t until 2027 or 2028, getting ready early will ensure you’re confident with the new process before it becomes mandatory.

• Check your income threshold: Review your gross rental and self-employment income for the past two tax years to determine exactly when you need to join.
• Choose your software: Research MTD-compatible software options early. Many providers offer specific features tailored for landlords, and HMRC provides a list of recognised software on GOV.UK.
• Start digital record-keeping now: Move away from paper receipts and start logging your rent and property expenses digitally. It will make the transition much easier.
• Sign up early: You can voluntarily sign up for MTD for Income Tax before it becomes mandatory for your income bracket. This allows you to get used to the software at your own pace without the pressure of strict deadlines.
• Speak to your accountant or bookkeeper: If you work with a tax professional, check in with them. They will need an agent services account to handle MTD quarterly updates on your behalf.

How OpenRent simplifies digital record-keeping for landlords

As HMRC and property regulations shift toward digital record-keeping, relying on paper receipts and ring binders is becoming a thing of the past. 

OpenRent helps you manage your tenancies online by allowing you to store your property records, such as tenancy contracts and certificates, among other things, in one secure platform.

Here is how OpenRent helps keep your tenancy administration organised and compliant:

• Centralised document storage: Store and access essential property certificates, including Gas Safety Certificates, Electrical Installation Condition Reports (EICRs), Energy Performance Certificates (EPCs), and Landlord Insurance, directly from your account.
• Digital tenancy agreements: All contracts and tenancy creation via Rent Now are handled digitally and saved online, giving you instant access to signed legal agreements whenever you need them.
• Automated rent payment logs: OpenRent’s Smart Rent Collection automatically logs every monthly payment in real time, notifying you as funds arrive and providing a clear, downloadable history of your rental income for your tax records.
• Compliance renewal tracking: Keep track of key safety dates and compliance checks without manual record-keeping, making it easier to pull together necessary dates and proof of property expenses or status.

By keeping your tenancy contracts, safety documentation, and rent logs neatly stored online, you reduce admin time and ensure your property business records are organised and accessible for digital tax reporting.

Final thoughts

Transitioning to Making Tax Digital for Income Tax might feel like a big change in how you run your rental business, but it doesn’t have to be overwhelming. The government’s phased rollout means most landlords have ample time to move away from paper records and put modern digital tools in place.

By taking small, proactive steps today – such as storing your safety certificates and tenancy contracts online, choosing MTD-compatible software, and tracking rent payments in real time – you’ll make it much easier for yourself to remain compliant with HMRC requirements and simplify your overall property administration year-round.