Making Tax Digital for Landlords: A Complete Guide

Does Making Tax Digital Apply to Landlords?

Yes. Making Tax Digital for Income Tax (MTD ITSA) applies to landlords as well as sole traders. If your total gross income from self-employment and/or rental property exceeds £50,000 from April 2026 (or £30,000 from April 2027), you must comply.

This means keeping digital records of your rental income and expenses, and submitting quarterly updates to HMRC through compatible software. The days of shoving receipts in a drawer and dealing with it once a year are numbered.

If you're unsure about the basics of MTD, start with our complete guide to Making Tax Digital 2026.

How Quarterly Reporting Works for Landlords

Under MTD, you'll submit updates to HMRC four times a year covering your rental income and expenses for each quarter. The quarters follow the tax year:

• Q1: 6 April – 5 July (due by 7 August)
• Q2: 6 July – 5 October (due by 7 November)
• Q3: 6 October – 5 January (due by 7 February)
• Q4: 6 January – 5 April (due by 7 May)

Each update is a summary of your income received and expenses paid during the quarter. It's not a full tax return — think of it as a progress report.

After the end of the tax year, you'll also submit an End of Period Statement (EOPS) and a Final Declaration (which replaces the self-assessment return). These are due by 31 January following the end of the tax year.

Allowable Expenses for Landlords Under MTD

MTD doesn't change what you can and can't claim — it just changes how you report it. Common allowable expenses for landlords include:

• Mortgage interest (at the basic rate tax credit)
• Insurance premiums (buildings and landlord insurance)
• Repairs and maintenance (but not improvements)
• Letting agent fees and management costs
• Legal and accountancy fees
• Council tax and utility bills (if you pay them)
• Ground rent and service charges
• Travel costs for property management

The key is that these expenses need to be recorded digitally as they occur, not reconstructed from memory at year-end. Good MTD software will let you log expenses quickly and categorise them correctly. See our guide to the best MTD software options — these work for landlords too.

Multiple Properties and MTD

If you own multiple rental properties, all your property income is treated as a single property business for MTD purposes. You don't need to submit separate updates for each property — instead, you report the combined totals.

However, it's good practice to track income and expenses per property within your software. This helps you understand the profitability of each property and makes it easier if you sell one and need to separate the figures.

If you have both UK and overseas rental properties, these are treated as separate property businesses and may need to be reported separately.

How to Get Started as a Landlord

Here's your action plan:

1. Check your income: Add up your gross rental income (before expenses). If it's over £50,000 combined with any self-employment income, you're in scope from April 2026.
2. Choose MTD software: TaxBridge works for landlords as well as sole traders. Sign up and connect to HMRC.
3. Start recording digitally: Begin logging your rental income and expenses in the software now, even before the mandate starts. This builds the habit.
4. Set up reminders: Mark the quarterly deadlines in your calendar. Missing them triggers penalty points.

Frequently Asked Questions