Do I need Making Tax Digital as a landlord?
The short answer: it depends on your gross rental income. Here's how to work it out.
How the threshold works
MTD is based on your qualifying income — your gross property income plus any gross self-employment income, combined. This is calculated before deducting any expenses.
| Income level | Status |
|---|---|
| £50,001+ | Required from April 2026 |
| £30,001–£50,000 | Required from April 2027 |
| £20,001–£30,000 | Expected from April 2028 |
| Below £20,000 | Not yet required |
What counts as qualifying income?
Income that counts toward the threshold:
- UK rental property income
- Overseas rental income
- Self-employment income (sole trader)
Income that does NOT count:
- PAYE employment income
- Pension income
- Dividend income
- Investment income
Joint ownership
If you co-own a rental property, each owner's share of the income counts individually toward their own qualifying income threshold. So if you own 50% of a property generating £80,000, your share is £40,000 — below the April 2026 threshold of £50,000.
What if my income fluctuates?
HMRC determines whether you're in scope based on your previous tax year's qualifying income. If your income drops below the threshold in a future year, you may be able to apply to exit MTD — but you'll need to have been compliant in the years you were in scope.
Exemptions
You may be exempt from MTD if you're digitally excluded (due to age, disability, or remote location), your income is below all thresholds, you're subject to insolvency proceedings, or you have a religious objection to electronic communication.
What to do if you're in scope
- Check your qualifying income from your 2024–25 Self Assessment return
- Choose HMRC-recognised MTD software
- Start keeping digital records now
- Submit your first quarterly update by 5 August 2026
Not sure if you're in scope?
Take our free 2-minute quiz and we'll tell you exactly where you stand.
Check if MTD applies to youFrequently asked questions
Is the threshold based on profit or gross income?
Gross income — before deducting any expenses. If your rent is £60,000 and your expenses are £15,000, your qualifying income is £60,000.
Does rental income from abroad count?
Yes. UK rental income and overseas rental income both count toward your qualifying income threshold.
What if I use a letting agent?
You remain personally responsible for MTD compliance even if a letting agent manages the property. The agent cannot submit on your behalf unless you formally authorise them.
I only have one property. Do I still need MTD?
If that one property generates over £50,000 in gross rent, yes — the number of properties is irrelevant. The threshold is based purely on income.