Making Tax Digital for landlords: who, when and how

Who has to use it

Making Tax Digital (MTD) for Income Tax applies to individuals who are landlords or sole traders, based on their qualifying income:

HMRC looks at the Self Assessment return you sent for the earlier year. A company that lets property pays Corporation Tax and is not in this scheme.

What counts as qualifying income

It is your total income from self-employment and property, before expenses (the gross figure, also called turnover):

• rent from UK property, and from property abroad if you are UK resident;
• income from self-employment.

It does not include employment income taxed through PAYE, your share of a partnership's profit, dividends or pensions. If you live abroad, only your UK property income and UK self-employment count.

Joint owners

If you own a let home with someone else, only your share of the income counts towards your qualifying income. If you only ever receive your share after expenses (for example, from a letting agent's statement), HMRC assesses that figure instead.

In your quarterly updates for a jointly let home you may send either income and expenses, or income only. If you leave the expenses out, you add them after the tax year ends by sending your fourth update again before you file the tax return.

What you have to do

1. Keep digital records of each amount of rent and each expense, in software or in a spreadsheet joined to software.
2. Send a quarterly update of your totals through compatible software. Deadlines are 7 August, 7 November, 7 February and 7 May. You can use the standard quarters (starting 6 April) or calendar quarters (starting 1 April), chosen in your software before the first update.
3. File the tax return for the year through the software by 31 January after the tax year ends, and pay what is due. The quarterly updates do not replace the return.

HMRC will not give penalty points for late quarterly updates in the 2026 to 2027 tax year. Late tax return and late payment penalties still apply.

Choosing software

HMRC keeps a list of compatible software on GOV.UK. Some products are free for simple tax affairs, with limits. If you already keep a spreadsheet, bridging software can connect to it and send the updates for you. Choose something that handles property income and, if you need it, jointly owned property.

Exemptions

You may be able to apply for an exemption if it is not reasonable for you to use digital tools, for example because of age, disability or where you live. If HMRC agrees, you keep reporting through Self Assessment as before.

Records still matter

Keep receipts and invoices for every cost. Remember that, for an individual, mortgage interest is not an expense taken from the rent: it gives a tax credit at the basic rate instead.

LevelMoves keeps your rent and costs by tax year and can export them for your accountant or MTD software; it does not send anything to HMRC.

This guide is information, not tax advice. Check HMRC's guidance or ask a tax adviser about your own position.