MTD ITSA - UK - 2026 rules - All guides
Making Tax Digital for Income Tax: Landlords
If you receive rental income, Making Tax Digital for Income Tax brings your property income into quarterly digital reporting once it crosses the threshold. Here is how landlords are assessed and what to expect.
MTD ITSA applies to landlords whose gross UK property income (combined with any self-employment income) is above the threshold for their phase — over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, and over £20,000 from 6 April 2028.
Does it apply to you?
Landlords are in scope for MTD ITSA on the same phased timetable as the self-employed. What matters is your qualifying income — the gross rent you receive, before deducting any expenses, mortgage interest or allowances. Gross property income over £50,000 means you start from 6 April 2026; over £30,000 from 6 April 2027; and over £20,000 from 6 April 2028. HMRC identifies your group from your previous Self Assessment return — the 2024/25 return for the April 2026 start.
The thresholds and dates
What counts toward your threshold
The test is on gross rent, not your rental profit after costs — so a landlord receiving £52,000 in rent but with high mortgage and maintenance costs is still measured at £52,000 and is in scope from April 2026. If you also have self-employment income, the two are added together against the threshold. For jointly-owned property, the starting position is that each owner reports their own share of the income and expenses, so each co-owner is tested on their share. Income fully covered by the £1,000 property allowance or Rent a Room relief does not count toward the threshold.
What you will need to do
Once mandated you keep digital records of your rental income and expenses, use MTD-compatible software, and send HMRC four quarterly updates each tax year (the first deadline for 2026/27 is 7 August 2026), followed by a Final Declaration. The quarterly periods align with the tax year regardless of when your own records run.
Common questions
I own one rental property — does MTD ITSA apply to me?
It depends on your gross rent. If your total qualifying income (property plus any self-employment) is over £50,000 you start from April 2026; over £30,000 from April 2027; over £20,000 from April 2028. A single property with modest rent below these levels is not yet mandated.
Is the threshold based on rent received or rental profit?
Rent received — gross income before mortgage interest, agent fees, repairs or any allowances. Your profit after costs does not determine whether you are in scope.
We own a property jointly — how is the threshold tested?
The starting position is that each owner reports their own share of the income and expenses, so each co-owner is assessed on their share of the gross rent rather than the whole.
I am an employed person with a rental property on the side — am I affected?
Your PAYE salary does not count toward the threshold. Only your gross rental income (plus any self-employment) is tested. If that property income is above the threshold for the phase, you are in scope despite being employed.
Does income from a furnished holiday let count?
Gross receipts from UK property businesses count toward your qualifying income. Specific reliefs may apply to your situation, so check your own circumstances — but the headline test is on gross property income before expenses.
Never miss a quarterly MTD deadline
AdminShield tracks your MTD ITSA quarterly updates and Final Declaration, reminds you before each falls due, and keeps your records organised - built for UK landlords and the accountants who support them.
Start free - no card requiredThis guide is general information about Making Tax Digital for Income Tax based on current HMRC rules and is not tax advice. Thresholds and dates may change; check your own circumstances with HMRC or a qualified accountant.