Guides › MTD for Landlords: Rental Income Threshold Explained
MTD for Landlords: Rental Income Threshold Explained
General information, not tax advice. This page summarises HMRC and GOV.UK guidance as read on 17 October 2026. Rules, thresholds and dates can change; check GOV.UK and speak to a qualified adviser or HMRC about your own circumstances. Figures in examples are made up.
Short answer: For landlords, qualifying income is gross rent (before expenses) from UK and foreign property, added to any self-employment turnover. The thresholds are the same as for sole traders: £50,000 (from April 2026), £30,000 (from April 2027) and £20,000 (from April 2028).
| Qualifying income in tax year | Threshold | You need to use MTD for Income Tax from |
|---|---|---|
| 2024 to 2025 | more than £50,000 | 6 April 2026 (already started) |
| 2025 to 2026 | more than £30,000 | 6 April 2027 |
| 2026 to 2027 | more than £20,000 | 6 April 2028 |
What counts for a landlord
- Gross rental income from your properties (see GOV.UK on how tax residence affects UK and foreign income).
- Your share of jointly owned property income. GOV.UK example: a property earning £50,000 split equally gives £25,000 qualifying income each.
- Property income and self-employment turnover are added together: £25,000 rent plus £27,000 self-employment is £52,000.
- If you only learn your share after expenses, HMRC assesses that figure.
- Landlords with a different accounting period must annualise their own property income to work out qualifying income.
What does not count
Employment income, dividends, pensions, income from UK REITs or PAIFs, and one-off transactions in UK land.
Digital records for landlords
- You must create digital records of property income and expenses with software; you also keep your normal supporting documents (bank statements, invoices).
- UK properties are legally one UK property business, so you do not keep separate records per property. Foreign properties need separate records per property but are one foreign property business.
- Rent-a-Room: GOV.UK says you must create digital records of Rent-a-Room income in some cases and the relief is then applied automatically.
- Property income allowance: if you claimed it on your last return, you need digital records of UK property income and expenses.
- Jointly let properties: record only your share. You can keep less detailed records (for example one record per category per quarter) and/or leave joint-let expenses out of quarterly updates, reporting them by resending the fourth update before you submit your return.
- Simpler categorisation: with turnover under £90,000 you may categorise less finely; residential landlords still record whether an expense is a restricted finance cost.
Spreadsheets
GOV.UK says software can either create digital records or connect to existing records such as spreadsheets ("bridging software"). If you use a spreadsheet, the records must be digitally linked to the software that submits to HMRC. Once a record has been sent in a quarterly update you must not manually move it by copy-and-paste or retyping.
Quarterly updates for landlords
Standard or calendar update periods; deadlines 7 August, 7 November, 7 February, 7 May. See quarterly update dates. Each update covers the tax year so far.
Choosing software
Check that the product supports property income (and any other source you have) and your accounting period. See choosing MTD software.
FAQ
Does rent from one property count toward the threshold? All property income counts, from all properties combined.
I jointly own a let with my partner. Whose income counts? Your share.
Do I need a separate record for each UK property? No, one UK property business.
Can I keep my spreadsheet? Possibly, with compatible bridging software and digital links.
What we could not verify
- How a specific bridging product handles your spreadsheet.
- Foreign property detail beyond GOV.UK's summary.
- Whether the £90,000 simplified-categorisation limit changes.
Sources (GOV.UK / HMRC)
- GOV.UK, Work out your qualifying income for Making Tax Digital for Income Tax — https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax (last updated 11 September 2026; read 17 October 2026)
- GOV.UK, Use Making Tax Digital for Income Tax: Create digital records — https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/create-digital-records (read 17 October 2026)
- GOV.UK, Use Making Tax Digital for Income Tax: Send quarterly updates — https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates (read 17 October 2026)
- GOV.UK, Choose the right software for Making Tax Digital for Income Tax — https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax (last updated 13 July 2026; read 17 October 2026)
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Not tax advice. Examples use made-up figures. Nothing here has been reviewed by a tax professional. See the disclosure.