Making Tax Digital for Income Tax
HMRC's system in which landlords and sole traders over an income threshold keep digital records and send quarterly updates using compatible software.
In short: Making Tax Digital for Income Tax requires landlords and sole traders whose combined gross income is over a threshold to keep digital records and send HMRC quarterly updates. It started on 6 April 2026 for income over £50,000, extends to over £30,000 from April 2027 and over £20,000 from April 2028.
England. Checked against the law on 5 October 2026. Information, not legal advice.
What it means in practice:
- Threshold based on gross rent plus self-employed income (not profit) in an earlier tax year.
- Digital records of income and expenses, kept in software that works with HMRC.
- Quarterly updates due by 7 August, 7 November, 7 February and 7 May.
- A final declaration after the tax year, by 31 January, replacing the old return.
Joint owners count their own share of the rent. Some people are exempt or can apply to be, for example if it is not reasonably practical for them to use digital tools.
This is general information; an accountant can check how it applies to you.
Related: Section 24 (mortgage interest relief restriction), Non-Resident Landlord Scheme
Where this comes from
Guides on this
Guide
Making Tax Digital for landlords: who, when and how
Making Tax Digital for Income Tax began on 6 April 2026 for qualifying income over £50,000; £30,000 follows in April 2027 and £20,000 in April 2028. What counts, quarterly updates and joint owners.
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