Tax & HMRC
Making Tax Digital for Income Tax becomes mandatory for landlords in stages: £50,000+ gross income from April 2026, £30,000+ from April 2027, and £20,000+ from April 2028. Median landlord gross rental income is around £19,200, so most unincorporated landlords will be affected by the 2028 stage.
Last reviewed 2 July 2026
MTD replaces the annual Self Assessment return with quarterly digital updates and a year-end final declaration. It changes how you report income, not how much tax you pay or when it's due. Limited company landlords are unaffected.
Key Facts
- April 2026: mandatory for gross property/self-employment income over £50,000 (based on 2024-25 income)
- April 2027: threshold falls to £30,000 (based on 2025-26 income)
- April 2028: threshold falls to £20,000 (based on 2026-27 income) — catching most landlords
- Median gross rental income for individual landlords is around £19,200 (2024 English Private Landlord Survey)
- Applies to individuals and unincorporated landlords only — limited company landlords stay on corporation tax as normal
- Quarterly updates do not trigger tax payments; payment dates for income tax are unchanged
What is changing, and when
Making Tax Digital for Income Tax replaces the annual Self Assessment return for landlords and sole traders with quarterly digital updates plus a year-end final declaration. It has been rolling out in stages since April 2026, and the threshold that decides who has to join keeps falling:
- From April 2026: mandatory for landlords and sole traders with combined gross income from property and self-employment of £50,000 or more, based on the 2024-25 tax year.
- From April 2027: threshold falls to £30,000, based on 2025-26 income.
- From April 2028: threshold falls to £20,000, based on 2026-27 income.
The income test is gross, not profit, and combines property and self-employment income where both apply. For jointly owned property, each owner is assessed on their own share.
Why "majority of landlords" by 2028 is not an exaggeration
The 2024 English Private Landlord Survey put the median gross rental income for individual landlords at £19,200. That figure sits below the £20,000 threshold arriving in 2028, but only just, and it is a median: a large share of landlords with typical, unremarkable portfolios earn above it. Combined with rising average rents, HMRC's own staged design effectively assumes that by 2028 most unincorporated landlords who file Self Assessment will be in scope.
What landlords have to do once mandated
Once inside the mandated population, a landlord must keep digital records of income and expenses, submit a quarterly update to HMRC through MTD-compatible software, and complete a year-end final declaration in place of the old tax return. Quarterly updates do not trigger tax payments and do not require full year-end adjustments; they exist to give HMRC a closer-to-real-time picture of income. Payment dates for income tax itself are not changing.
Landlords who report both UK and overseas property must submit separate quarterly updates for each property business. Where a property is jointly owned, each owner reports independently, even if one person manages the letting day to day.
What it does not change
MTD does not alter income tax rates or when tax is due. It is a reporting-format change, not a new tax. It also does not apply to landlords who hold property through a limited company; those landlords continue to pay corporation tax in the normal way, entirely outside MTD.
Once you are in, you generally stay in
HMRC assesses eligibility each year using the landlord's most recent tax return. A landlord whose income later falls below the current threshold does not automatically leave MTD; HMRC's guidance indicates removal only follows a subsequent annual review confirming qualifying income has dropped to the £20,000 floor that applies from 2028 onward. In practice, landlords whose income fluctuates around a threshold should expect at least two tax years inside MTD before any exit is considered.
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This article is for general information only and is not personalised financial, tax or legal advice. Rules and figures change; always check the primary source and, where relevant, speak to a qualified adviser before making a decision based on this content.
