Making Tax Digital for landlords and joint property owners
Landlords must use Making Tax Digital for Income Tax if their qualifying income, meaning rent and any self-employment income before expenses, is over £50,000 (from April 2026), £30,000 (from April 2027) or £20,000 (from April 2028). Joint owners count only their own share. IB&Co Accountants in Canary Wharf signs landlords up, sets up software and files their quarterly updates.
Do I need to use Making Tax Digital as a landlord?
You need to use Making Tax Digital (MTD) for Income Tax if all of these apply:
- you are a landlord (or sole trader) registered for Self Assessment
- you have income from property, self-employment or both
- your qualifying income is above the threshold for the relevant year
| Qualifying income over | Measured in tax year | You must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 (already in force) |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
| Qualifying income is your gross rent plus any self-employment turnover, before expenses. It is your turnover, not your profit. Employment income, dividends, pensions and your share of partnership profit do not count. HMRC uses the Self Assessment return you filed for the earlier year to decide whether you are in. |
With the £30,000 threshold coming in April 2027, many landlords with one or two London flats will be brought in for the first time. HMRC has been writing to people it expects to be affected, but a letter is not required for the rules to apply: if your income is over the threshold, it is your responsibility to sign up.
Do joint property owners need to use Making Tax Digital?
Only your share of the income counts towards your qualifying income. If a property you own equally with a sibling brings in £50,000 a year, your qualifying income from it is £25,000. Couples who own a property jointly therefore test their shares separately, which can mean one partner is in MTD and the other is not, depending on their other income.
There is also an easement for jointly let property: in your quarterly updates you can report the income only, and add the expenses after the end of the tax year. That helps where a letting agent or co-owner holds the expense records.
What do landlords have to send under MTD?
Once you are in MTD for Income Tax, you:
- keep digital records of rental income and expenses in compatible software (bridging software that links to a spreadsheet is allowed)
- send a quarterly update for each property business, summarising income and expenses
- submit your tax return through the software by 31 January after the tax year ends
UK property and overseas property count as separate property businesses, so a landlord with both sends separate updates.
When are the quarterly update deadlines?
| Update period | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
| A quarterly update is a summary, not a tax return, and it does not change when you pay tax. Your balancing payment and any payments on account are still due on 31 January and 31 July. |
What are the penalties for landlords who are late?
MTD uses a points-based system for late submissions. You get a point for each missed deadline, and at 4 points a £200 penalty, with another £200 for each further missed deadline. For 2026 to 2027 only, late quarterly updates do not earn points, although a late tax return does. The government announced at the Budget on 28 October 2026 that people who must join in April 2027 will not get points for late quarterly updates in 2027 to 2028. This is a proposal until it becomes law.
What else is changing for landlords from April 2027?
At the Budget on 28 October 2026 the government announced that, from 6 April 2027, property income in England, Wales and Northern Ireland will be taxed at a property basic rate of 24%, a property higher rate of 44% and a property additional rate of 49%. That is 2 percentage points above the 22%, 42% and 47% already set in law for 2027 to 2028. The change is in Finance Bill 2026-27, which is still going through Parliament, so it is a proposal until it becomes law. Combined with quarterly reporting, it makes accurate, up-to-date records more valuable than ever. Our Property & Capital Gains Tax advice looks at ownership and planning before you act.
Are any landlords exempt?
Some are. Examples include people with qualifying income of £20,000 or less, people who are digitally excluded (who must apply), and some groups with a temporary exemption until at least April 2027, such as people who file the residence pages of the tax return. The government announced at the Budget on 28 October 2026 that people eligible for qualifying care relief, non-UK resident entertainers and sportspeople, and people expected to be non-resident will be exempt until further notice. This is a proposal until it becomes law. If you are exempt, you still file a Self Assessment return in the usual way. The full list is on our main Making Tax Digital page.
How IB&Co helps landlords with MTD
- check your qualifying income for each year, including joint ownership
- sign you up, or check whether HMRC has already signed you up
- choose and set up software, and connect your bank feeds and letting agent statements
- prepare and send your quarterly updates and year-end return as your agent
- keep property records through our Landlord Tax Pack
We are regulated by the IFA and IPA, and led by Ishmael Bangura FFA, accountant and qualified tax adviser. As QuickBooks and Xero ProAdvisors, we can help you choose and set up MTD-compatible software.
Frequently asked questions
Qualifying income over £50,000 brought landlords in from 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
On gross rent plus any self-employment turnover, before expenses, not on profit.
Each owner tests only their own share of the income. If your share, plus any other self-employment or property income, is over the threshold, you need to use MTD.
7 August, 7 November, 7 February and 7 May, for the periods ending 5 July, 5 October, 5 January and 5 April.
Not for 2026 to 2027, when late quarterly updates do not earn penalty points. The government announced at the Budget on 28 October 2026 that people who must join in April 2027 will not get points for late quarterly updates in 2027 to 2028. This is a proposal until it becomes law. A late tax return still earns a point.
Yes. Once we are authorised as your agent, we prepare and send your quarterly updates and your year-end return.
Get ready for Making Tax Digital
Book a Discovery Call and we will check when MTD applies to you and set up the right software.
Call 020 7164 0225 or visit us at Level 37, 1 Canada Square, Canary Wharf, London E14 5AA. Open Monday to Friday 9:00 to 18:30 and Saturday 10:30 to 16:30.
Checked on 11 November 2026. This page is general information based on HMRC guidance at that date, and is not advice for your circumstances.
