Last checked 19 October 2026
Quick answer
Rental income counts towards MTD qualifying income, added to any self-employment income. MTD for Income Tax applies once the total, before expenses, is over £50,000 (from 6 April 2026), £30,000 (from 6 April 2027) or £20,000 (from 6 April 2028), according to GOV.UK. For jointly owned property, only your share counts.
This is general information, not tax advice. Check GOV.UK or speak to an accountant about your situation. Why we say this.
This guide is for individual landlords who let residential or commercial property, including people who are also self-employed.
What changes
Digital records
Your self-employment and property income and expenses are kept in compatible software. Spreadsheets can still be used with software that links to them.
Quarterly updates
Every 3 months your software sends HMRC a summary of income and expenses for each business. It isn’t a tax return.
A tax return at the end
You still submit one tax return a year, using your software, and pay your tax bill by 31 January after the tax year ends.
Does MTD for Income Tax apply to you?
GOV.UK says you need to use MTD for Income Tax if you’re a sole trader or landlord registered for Self Assessment, you get income from self-employment or property (or both), and your qualifying income is over the threshold for the relevant tax year. Qualifying income is your total self-employment and property income before expenses (turnover), not your profit.
| Qualifying income on your tax return for | Over | You’ll need to use MTD from |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
Source: Find out if and when you need to use Making Tax Digital for Income Tax, GOV.UK.
GOV.UK’s qualifying income guidance adds property and self-employment income together. Its example is £25,000 of rental income plus £27,000 of self-employment income, which gives qualifying income of £52,000, even though neither is over £30,000 on its own.
Joint property. Your share of the income counts. GOV.UK’s example is a property bringing in £50,000, shared equally with a sibling, which gives each of them £25,000. If you only learn your share after expenses have been deducted, GOV.UK says HMRC will use that figure.
Even without a letter from HMRC, GOV.UK says it’s your responsibility to check. Its checker tool can help.
What you’ll need to keep digitally
GOV.UK says each digital record needs the amount, the date and a category (the same categories as Self Assessment). You also keep supporting records, such as bank statements and invoices, for at least 5 years after the 31 January deadline.
GOV.UK’s digital records guidance treats all your UK properties as one UK property business, including your share of any joint lets, so you don’t need separate records for each UK property. Foreign property is different: you need separate records for each foreign property, which are then combined into one foreign property business.
Records typically cover rent received and costs such as repairs, maintenance, letting agent fees and insurance. Some points from GOV.UK:
- Letting agents. If you only know your rent after the agent’s fees, record the full rent and the fees separately.
- Joint lets. You only record your share, and you can choose less detailed records (for example one record of rent per quarter) or leave joint-let expenses out of quarterly updates and add them before your tax return. Your records don’t need linking to the other owner’s.
- Mortgage payments. Record either the interest or the full payment; if you record the full payment, adjust it before you finalise your tax position.
- Residential finance costs. Even with simpler categorisation, residential landlords must record whether an expense is a restricted finance cost.
GOV.UK also explains when income covered by the property allowance or Rent-a-Room relief needs digital records.
Key dates
If your qualifying income for 2025 to 2026 is over £30,000, GOV.UK’s published update periods give these dates for your first MTD year, on standard update periods:
- 6 April 2027: MTD starts and your digital records begin
- 7 August 2027: first quarterly update (6 April to 5 July 2027)
- 7 November 2027: second quarterly update (6 April to 5 October 2027)
- 7 February 2028: third quarterly update (6 April 2027 to 5 January 2028)
- 7 May 2028: fourth quarterly update (6 April 2027 to 5 April 2028)
- 31 January 2029: tax return and tax bill for 2027 to 2028
Sources: Send quarterly updates and Submit your tax return, GOV.UK. See our MTD quarterly deadlines 2027 to 2028 page for calendar update periods, and penalty points for late updates.
Free MTD deadline calendar
Add these dates to your phone or computer calendar. No email address or sign-up needed. Download the MTD key dates calendar (.ics)
What kind of software you’ll need
HMRC doesn’t provide software. GOV.UK says yours must create digital records, send quarterly updates and submit your tax return. Some software creates records itself; bridging software connects to records you already keep, such as spreadsheets. If you have both self-employment and property income, check that your software supports both, or that separate products can work together. HMRC’s find software tool lists products that have been through its recognition process. We don’t recommend particular products.
Rent payments
Rent paid by bank transfer, standing order or cash all needs digital records. If a letting agent collects rent and pays you after its fees, GOV.UK says to record the full rent and the fees separately.
Tip
All your UK properties form one UK property business for MTD, so one set of digital records covers them, according to GOV.UK.
Questions people ask
Do I pay tax every quarter?
No. Quarterly updates are summaries of income and expenses. GOV.UK says MTD won’t change the way you pay tax or the dates payments are due.
Do I need a quarterly update for each property?
Not for UK property. GOV.UK says your UK properties are treated as one UK property business, and your software adds the records together into one quarterly update. Foreign property is a separate business.
Next steps
- Work out your qualifying income: the £30,000 threshold explained
- How to sign up for Making Tax Digital
- MTD quarterly updates explained
- Keeping records in spreadsheets: bridging software explained
- Check whether you could be exempt from MTD
- How MTD penalty points work from April 2027
- How much tax to set aside
Sources
All checked on 19 October 2026.
- Find out if and when you need to use Making Tax Digital for Income Tax (updated 26 March 2026)
- Work out your qualifying income for Making Tax Digital for Income Tax (updated 11 September 2026)
- Create digital records (updated 16 July 2026)
- Send quarterly updates (updated 16 October 2026)
- Submit your tax return (updated 16 July 2026)
- Choose the right software for Making Tax Digital for Income Tax (updated 13 July 2026)
- Find software that works with Making Tax Digital for Income Tax