Making Tax Digital for landlords: what's changing and when

Making Tax Digital for Income Tax tends to get talked about as something that affects the self-employed. It also applies to landlords — and if you rent out property alongside other income, the rules can catch you sooner than you'd expect.

Who it applies to

MTD for Income Tax applies based on your total qualifying income — the combined gross income from self-employment and property, added together before expenses are deducted. That means if you're a landlord with £25,000 in rental income and also self-employed with £30,000 in business income, you're assessed on £55,000 combined, not on each figure separately.

This catches some landlords by surprise. You don't need to be a full-time property investor to be in scope — a single rental property alongside other income can be enough to cross the threshold.

The rollout timeline

MTD for Income Tax is being phased in gradually, based on your qualifying income:

• From April 2026 — mandatory if your qualifying income is above £50,000.
• From April 2027 — mandatory if your qualifying income is above £30,000.
• From April 2028 (proposed, under consultation) — mandatory if your qualifying income is above £20,000.

HMRC uses your Self Assessment return from an earlier tax year to determine whether you're in scope, so it's worth checking your last return now rather than waiting for a letter.

What changes for landlords in practice

Instead of a single annual Self Assessment return, you'll need to:

• Keep digital records of your rental income and expenses throughout the year, rather than gathering everything together once a year.
• Submit a quarterly update to HMRC summarising your income and expenses for each property business.
• Send a final declaration at the end of the tax year, similar in spirit to the current Self Assessment return, to confirm your total income and any adjustments.

If you have more than one property business — for example, both a UK property business and income from self-employment — each is treated separately, with its own quarterly updates.

Jointly-owned property

If you own property jointly, MTD applies to your share of the income, and each owner's qualifying income is assessed separately. Two joint owners with income comfortably under the threshold individually won't be pulled into MTD just because the property's total income is higher — but it's worth checking the numbers on each side rather than assuming.

Getting ready

The most useful thing you can do now, regardless of exactly when your own threshold applies, is to start keeping digital records of rental income and expenses as you go — rent received, letting agent fees, repairs and maintenance, mortgage interest relief, insurance, and any other allowable costs. Building that habit before MTD is mandatory for you means the transition is a formality rather than a scramble.

StrideBooks supports landlords as well as sole traders, so you can keep property income and expenses organised digitally now, ready for whichever year your MTD threshold arrives.