The short answer
Making Tax Digital for Income Tax became mandatory on 6 April 2026 for many individual landlords and sole traders whose qualifying income for 2024–25 was more than £50,000. The threshold falls to more than £30,000 from 6 April 2027 and more than £20,000 from 6 April 2028.
People in scope must keep digital records, send quarterly updates and submit their tax return using software that works with MTD for Income Tax. M.T.D.O. helps organise records and quarterly figures, but it is not recognised filing software.
MTD start dates and income tests
| Income shown for | Qualifying income | MTD start date |
|---|---|---|
| 2024–25 | More than £50,000 | 6 April 2026 |
| 2025–26 | More than £30,000 | 6 April 2027 |
| 2026–27 | More than £20,000 | 6 April 2028 |
Qualifying income is the gross income from self-employment and property before expenses and tax allowances. HMRC combines those sources for the threshold test. It does not mean profit, and the value of the properties is not the test.
What landlords in scope must do
- Sign up with HMRC. Registration for Self Assessment alone does not complete the MTD sign-up.
- Keep digital records. For rental income and expenses, record the amount, date and relevant category in compatible software or a digitally linked record system.
- Send quarterly updates. These are summaries of income and expenses for each business or property-income source.
- Submit the tax return. Quarterly updates do not replace the annual return, which still includes other income and final adjustments.
Exemptions and cases that need care
Partnerships are not currently mandated, although an individual partner may separately be in scope for their own property or sole-trader income. HMRC also lists automatic and application-based exemptions, including circumstances involving digital exclusion. Qualifying income of £20,000 or less is currently an automatic exemption.
Joint ownership, furnished holiday lettings, foreign property income, trusts and estates can affect how records or eligibility are handled. Use HMRC’s checker or professional advice when the facts are not straightforward.
A practical landlord preparation checklist
- confirm the qualifying-income figure from the relevant Self Assessment return;
- check the HMRC start date and complete MTD sign-up where required;
- choose HMRC-recognised compatible filing software;
- record rent and expenses close to the transaction date;
- separate finance costs and other relevant expense categories;
- reconcile bank activity before each quarterly deadline;
- retain a clear hand-off from any record-keeping tool into the filing software;
- complete the tax return after all quarterly updates have been sent.
Where M.T.D.O. fits
M.T.D.O. is designed for the preparation side: organising property records, checking quarter totals, tracking deadlines and keeping tenancy administration alongside the numbers. It does not authorise with HMRC or transmit a submission.
Continue with the digital-record guide → or see every quarterly deadline →.