Making Tax Digital · Landlord guide · Back to pillar
MTD for landlords: the complete guide to Making Tax Digital Income Tax.
Written by Mehmood Rajoka
Managing Partner, RR Accountants · IFA-supervised practice
What is MTD for landlords?
Making Tax Digital for Income Tax (MTD ITSA) requires UK landlords with gross rental income above £50,000 to keep digital records and submit four quarterly updates to HMRC per year, starting April 2026. A final declaration replaces the traditional self-assessment return. Landlords below £30,000 gross are currently exempt. Properties held in a limited company are not affected — they follow corporation tax rules. Source: GOV.UK.
MTD Income Tax thresholds for landlords
Thresholds based on gross income — total receipts before deductions. Source: GOV.UK.
| Start date | Who must comply | Gross threshold |
|---|---|---|
| April 2026 ✓ Live now | Landlords & sole traders | Above £50,000/year |
| April 2027 | Landlords & sole traders | Above £30,000/year |
| April 2028 | Landlords & sole traders | Above £20,000/year |
| Below £20,000 | Lowest-income taxpayers | Exempt — no announced phase-in |
Combined gross income (rental + self-employment) is added together when assessing the threshold. Properties held in a limited company do not count. See LITRG for worked examples.
What MTD for Income Tax requires from landlords
Digital records
All rental income and property expenses must be recorded digitally throughout the year using HMRC-approved software. Paper records and unsupported spreadsheets are not permitted.
Quarterly submissions
Four updates per year submitted to HMRC summarising income and expenses for each quarter. Deadlines are 7 August, 7 November, 7 February, and 7 May.
Final declaration
Replaces the traditional SA100 self-assessment return. Submitted by 31 January following the tax year. Confirms total income, allowances, and any adjustments.
Which landlords does MTD apply to?
✓ MTD applies to
- ✓Landlords with gross rental income above £50,000 (from April 2026)
- ✓Sole traders with gross income above £50,000 (from April 2026)
- ✓Combined rental + self-employment income above £50,000 (from April 2026)
- ✓Landlords approaching the £50,000 threshold
- ✓Anyone who currently files self-assessment for property income
✕ MTD does not apply to
- ✕Landlords with gross income below £30,000 in 2026/27 (joining April 2027 if income is £30,000–£50,000, April 2028 if £20,000–£30,000)
- ✕Properties held in a limited company (SPV) — these follow corporation tax
- ✕Overseas landlords on non-UK income
- ✕Income from furnished holiday lets (rules differ — seek advice)
What software do landlords need for MTD?
You need HMRC-recognised MTD-compatible software that maintains a digital link from your records to the submission. You cannot submit directly through HMRC's own portal. See GOV.UK for the current list of compatible products. For a deeper comparison, see our software guide for landlords.
We set up and manage MTD-compatible software for every client. You do not need to configure it yourself — onboarding includes software setup, HMRC connection, and a walkthrough of the quarterly cadence.
MTD penalties for landlords
Source: ICAEW — MTD for Income Tax penalties. For the full points system and the 2026/27 soft landing, see our MTD penalties guide.
| Failure | Consequence |
|---|---|
| Missed quarterly submission | 1 penalty point per missed submission |
| 4 penalty points accumulated | £200 fixed penalty triggered |
| Continued non-compliance beyond point threshold | Further £200 penalties per missed submission |
| Penalty points lifespan | Points last 24 months |
| Late payment of tax due | Separate late payment penalties apply |
We track penalty points for every MTD client and submit before every deadline. No client should ever accumulate points.
MTD for landlords — frequently asked questions
What is Making Tax Digital for Income Tax (MTD ITSA)?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC's requirement for landlords and sole traders to keep digital records and submit four quarterly updates per year, replacing the annual self-assessment return for income above the threshold. It started April 2026 for those with gross income above £50,000. See gov.uk/topic/business-tax/making-tax-digital.
Which landlords must register for MTD Income Tax?
Landlords with gross property income above £50,000 per year must comply from April 2026. From April 2027, the threshold drops to £30,000 gross, and from April 2028 to £20,000. Gross income means total rental receipts before any deductions or expenses. Combined gross income (rental plus self-employment) is added together to assess the threshold.
What does MTD for landlords require in practice?
MTD requires three things: (1) keep digital records of rental income and expenses throughout the year using MTD-compatible software; (2) submit four quarterly updates to HMRC summarising income and expenses; (3) submit a final declaration by 31 January, replacing the traditional SA100 tax return. You cannot use paper records or unsupported spreadsheets alone.
What are the quarterly submission deadlines for landlords?
Quarterly submissions are due approximately one month after each quarter ends — 7 August, 7 November, 7 February, and 7 May. The exact dates depend on your accounting period. A final declaration is due by 31 January following the tax year.
What software do landlords need for MTD?
You need HMRC-recognised MTD-compatible software with digital links — typically Xero, FreeAgent, QuickBooks, or a bridging product. Landlords with straightforward portfolios often use specialist property software with an MTD bridge. Standalone spreadsheets are not permitted. We set up and manage the software for every MTD client.
What are the MTD penalties for landlords?
MTD uses a points-based penalty system. Each missed quarterly submission earns one point. Accumulating four points within 24 months triggers a £200 penalty, plus additional £200 penalties for ongoing non-compliance. Separate late payment penalties apply to any tax due.
Do landlords with properties in a limited company need to comply with MTD?
No. Properties held through a limited company (SPV) are subject to corporation tax, not income tax. MTD ITSA applies only to personally held rental income. If you hold some properties personally and some through an SPV, only the personal rental income counts towards the MTD threshold.
How do I prepare my rental portfolio for MTD?
The four steps are: (1) confirm whether your gross income is above the threshold; (2) choose and set up MTD-compatible software; (3) establish a digital record-keeping routine for income and expenses; (4) register with HMRC for MTD ITSA before your first quarterly deadline. We handle all four steps for clients we onboard before their first submission date.
Related guides in the MTD-IT series
The pillar and six companion spokes — pick the one closest to your situation.
MTD-IT pillar guide
The full 2026 overview — thresholds, the quarterly cycle, software, and the seven-spoke series.
Who is in scope
The threshold rules, gross-income test, base-year examples.
What you file each quarter
The cumulative-update cycle, deadlines, dry runs.
Penalties and the 2026/27 soft landing
Point system, the £200 threshold, what the grace period does and does not cover.
MTD for sole traders
Self-employment rules, side-income combinations, partnership status.
Choosing MTD-compatible software
What HMRC requires, bridging vs all-in-one, what to weigh.
How to prepare before your start date
A practical do-it-now checklist.
MTD compliance, handled.
Property-specific MTD software, a chartered practice that runs the quarterly cycle for you, or both.
LandlordFlow
MTD for landlords, property-by-property
Built for landlords: rent ledgers, allowable-expense tracking, SPV-aware reporting, and MTD-compliant quarterly submissions.
See LandlordFlowRR
Done-for-you MTD by a chartered practice
We run the quarterly cycle for you — digital records, MTD submissions, the final declaration, deadline tracking. No software learning curve.
Talk to RRSmartBooks
MTD-ready bookkeeping for sole traders
UK-built bookkeeping software designed for MTD from day one. Quarterly updates, cumulative submissions, and the final declaration — handled.
See SmartBooksAbout the author
Mehmood Rajoka, Managing Partner, RR Accountants
Managing Partner at RR Accountants — a UK practice supervised by the Institute of Financial Accountants. Specialist focus on UK landlord and property tax, MTD for Income Tax, and limited-company advisory. RR Accountants serves clients across four UK offices.
Connect on LinkedIn.
This guide is general information about UK tax rules. It is not personal tax advice. For advice tailored to your situation, speak to a regulated UK accountant. All figures verified against gov.uk and ICAEW as of 31 May 2026. MTD rules continue to evolve — re-check primary sources before acting.