Making Tax Digital (MTD)
HMRC's digital tax reporting regime. Landlords with gross property and self-employment income over £50,000 keep digital records and file quarterly updates, with lower thresholds phasing in through 2028.
Making Tax Digital for Income Tax replaced the annual Self Assessment cycle with digital record keeping and quarterly updates for landlords and sole traders above the income threshold, starting 6 April 2026.
Who is in scope and when
The test is qualifying income: gross income from property and self-employment combined, before deducting any expenses. Rents of £60,000 with £25,000 of profit count as £60,000.
- Over £50,000 (in 2024-25): mandated from 6 April 2026
- Over £30,000 (in 2025-26): mandated from 6 April 2027
- Over £20,000 (in 2026-27): mandated from 6 April 2028, confirmed in legislation
For jointly owned property, each owner counts their share of the gross rent.
What it involves
Digital records in MTD-compatible software, four quarterly updates a year (the first submission deadline for 2026-27 was 7 August 2026), and a final declaration replacing the tax return. Penalties are points-based, with a light-touch first year.
HMRC writes to taxpayers whose returns suggest they are in scope, but the responsibility to check and sign up sits with you even if no letter arrives. Check your position on GOV.UK rather than waiting to be told.