Making Tax Digital for Income Tax is finally moving from theory to practice for many landlords. From 6 April 2026, landlords with combined gross self-employment and property income over £50,000 must use compatible software to keep digital records and send quarterly updates to HMRC, with those over £30,000 following from April 2027 (see HMRC’s eligibility guidance). For context, private renting now covers 19% of UK households, up from 17% a year earlier, so a large slice of owners will be touched by these changes (ONS, 2025).
This article explains who is caught by MTD for landlords, what has to be filed and when, how joint ownership and furnished holiday lets are treated, how exemptions work, and the practical steps to get ready without disrupting cashflow. We also flag the penalty regime so you can avoid needless fines. If you would like tailored help for your portfolio, our tax advisory team can support set-up, software choice and ongoing filings.
Who MTD for landlords affects and when
If your qualifying income from self-employment and UK property exceeds £50,000 in the 2024/25 tax year, you join MTD for landlords from 6 April 2026. If it exceeds £30,000 in 2025/26, you join from 6 April 2027. The government has also set out plans for a £20,000 threshold from April 2028. Qualifying income is measured before expenses and includes all UK property businesses you own as an individual. Company-owned property is outside MTD for Income Tax.
Key filing points under MTD for landlords:
- Digital records: Keep income and expense records digitally in compatible software that works with HMRC’s MTD ITSA service (HMRC, 2025).
- Quarterly updates: Send income and expense totals each quarter. Standard periods run 6 Apr–5 Jul, 6 Jul–5 Oct, 6 Oct–5 Jan, 6 Jan–5 Apr, with deadlines on the 7th of the following month – for example, the first 2026/27 update is due 7 August 2026 (HMRC, 2024).
- End of Period Statement (EOPS) and final declaration: After the tax year ends, you finalise figures and make adjustments in your software, then submit the year-end return by 31 January following the year.
Digital record-keeping, software and agent access
Under MTD for landlords you must keep digital records of property income and expenses and submit updates directly from your software. HMRC maintains a live list of compatible MTD for Income Tax software and explains the features you need, such as digital record-keeping, quarterly submissions and year-end filing (HMRC, 2025).
If we act as your agent, we can connect to your MTD account once you authorise us in the software. That allows us to review entries during the year, tidy expense categories, and manage submissions on time. If you are not confident with digital tools, speak to us early – we can suggest simple, landlord-friendly apps and set up secure data capture from bank feeds and letting statements.
MTD for landlords: Joint property and furnished holiday lets
Joint ownership creates specific reporting easements. HMRC’s digital record-keeping notice confirms that where property is jointly owned, each owner can create one digital record per category of income for the joint business each quarter and can defer reporting their share of expenses to year-end finalisation if preferred. In short, each owner files their own share, in their own MTD account.
From April 2025 the furnished holiday lettings (FHL) tax regime is abolished, aligning FHL with other property income (HMRC, 2024). That does not remove FHL from MTD – it simply means those lets are treated as standard property businesses for Income Tax. If your combined property and trading income crosses the relevant threshold, your FHL income and expenses must be kept and reported digitally like any other letting.
Practical implications:
- Ownership shares: Record the legal ownership split and keep a simple working showing how income and costs are split.
- Finance costs: Track residential property finance costs separately in your records to ensure correct treatment at year-end.
- Mixed portfolios: If you have standard ASTs and short-term lets, keep separate categories in software so quarterly totals map cleanly to HMRC categories.
What to file and when – penalties if you miss it
Your timeline in the first mandated year (assuming you join in 2026/27) looks like this:
- Quarter 1 update: 6 Apr–5 Jul, due 7 August 2026.
- Quarter 2 update: 6 Jul–5 Oct, due 7 November 2026.
- Quarter 3 update: 6 Oct–5 Jan, due 7 February 2027.
- Quarter 4 update: 6 Jan–5 Apr, due 7 May 2027.
- Year-end finalisation: Adjust and submit the final declaration by 31 January 2028.
HMRC is introducing a points-based late submission system for Income Tax. Miss a quarterly deadline and you get a point; reach the quarterly threshold and you are charged £200. Points can reset after a compliant period. Separate late payment penalties apply and increase the longer tax remains unpaid (see HMRC’s late submission penalties overview and payment penalty guidance). The upshot is simple – file on time in software, and keep a small tax reserve to avoid interest and escalating penalties.
Exemptions and digital exclusion
You can apply for an exemption if it is not reasonable for you to use digital tools – for example due to age, disability, or remote location without internet access. HMRC sets out the process and what evidence is needed in its digital exclusion guidance and application page (HMRC, 2025). If you are borderline, speak to us. In some cases we can manage compliance through our systems, which may remove the need for an exemption.
MTD for landlords: Practical preparation checklist
- Data capture:
Bank feeds: Switch on read-only bank feeds for rent accounts to automate income capture.
Letting statements: Ask your agent for monthly CSVs and import them.
Receipts: Use a phone app to snap and store invoices; avoid manual re-typing. - Expense categorisation:
Chart of accounts: Map common landlord costs to HMRC categories now.
Finance costs: Track mortgage interest separately for residential lets.
Repairs vs capital: Agree simple rules with us so quarterly updates aren’t distorted. - Agent access:
Authorisation: Give us agent access in your chosen software.
Quarterly reviews: We review entries ahead of each 7th-of-the-month deadline – small checks prevent year-end rework. - Joint property:
Ownership splits: Keep a standing record and apply it consistently.
Easement choice: Decide early whether to report joint expenses quarterly or at year-end. - Timeline and reminders:
Calendar: Add 7 Aug, 7 Nov, 7 Feb and 7 May to your diary.
Buffer: Aim to reconcile and submit one week early – this protects against last-minute issues. - Testing and onboarding:
Software trial: Start a parallel digital record now for 2025/26 to familiarise yourself before go-live.
Health check: We can run a pre-MTD data check and tidy opening balances.
Why this matters now – and how we can help
With 2.86 million unincorporated landlords reporting rental income in 2023/24, a large number will transition to quarterly digital reporting over the next three years (HMRC statistics, 2025). The rules are not difficult, but they are different – particularly the need for consistent digital records and split-out finance costs. The penalty system also raises the stakes for missed deadlines.
If MTD for landlords applies to you from April 2026 or April 2027, now is the time to choose software, agree workflows, and run a short pilot. We can set up your software, connect secure feeds, and manage quarterly submissions so you stay compliant and focused on running your properties. Speak to us for a straightforward plan and a fixed-fee package for MTD for landlords compliance.