Last reviewed: 7 September 2026.
Making Tax Digital for Income Tax affects many individual landlords from the 2026/27 tax year. It changes how records are kept and how property income and expenses are reported to HMRC during the year.
This guide covers the main practical points for residential landlords. For implementation support, see Digivolve’s MTD for Income Tax service.
When does MTD apply to landlords?
From 6 April 2026, an individual must use MTD for Income Tax if their combined qualifying income from property and self-employment is more than £50,000. The threshold is due to reduce to more than £30,000 from April 2027 and more than £20,000 from April 2028.
The test is based on qualifying gross income before expenses, not rental profit. A landlord with £40,000 of gross rents and £15,000 of sole-trade turnover may therefore exceed the £50,000 threshold even if their taxable profit is much lower.
What records must landlords keep?
Property income and allowable expenses must be recorded digitally using compatible software. This normally includes rents received, agent fees, insurance, repairs, finance costs and other property-business transactions. Digital records should be maintained during the year rather than recreated at the deadline.
What happens with jointly owned property?
MTD applies to individuals, so each owner must consider their own share of qualifying property income together with any qualifying self-employment income. The ownership arrangement and beneficial share of income need to be reflected correctly in each person’s records and tax return.
Do landlords pay tax every quarter?
No. Quarterly updates report summary income and expense information, but they do not create four new payment deadlines. The balancing payment deadline normally remains 31 January following the tax year. Payments on account may still apply under the usual Self Assessment rules.
Can a spreadsheet still be used?
A spreadsheet may form part of a compliant system if it is linked to compatible bridging software and the required digital links are maintained. For landlords with multiple properties or mixed income sources, dedicated cloud accounting software often provides a clearer audit trail and reduces manual work.
What if a managing agent collects the rent?
You still need complete digital records for your property business. Statements from a letting or managing agent should be captured regularly and reconciled to the amounts received, fees deducted and other costs paid on your behalf.
Can an accountant handle MTD for a landlord?
Yes. An authorised agent can maintain records and make submissions using compatible software. The landlord remains responsible for supplying complete information and approving the final figures, so a simple document and bank-feed process is important.
Landlord MTD preparation checklist
- Confirm your share of gross rental income.
- Add any gross sole-trade income.
- Check which start date applies to you.
- Choose compatible software.
- Separate and organise property transactions.
- Connect relevant bank feeds where appropriate.
- Agree who will maintain records and send quarterly updates.
- Complete agent authorisation before the first deadline.
Support from Digivolve
Digivolve helps landlords set up practical digital bookkeeping, use Xero and prepare MTD submissions without losing sight of the final Self Assessment position. We support property owners in Haywards Heath, West Sussex and throughout the UK.
Contact our team or read the full Making Tax Digital guide.
Official guidance
See the latest HMRC guidance for sole traders and landlords. This article is general information and does not replace advice based on your circumstances.