Making Tax Digital for landlords, explained
If you receive rental income, Making Tax Digital for Income Tax will change how you report it to HMRC — quarterly digital updates through compatible software instead of one annual return. Here's when it applies to landlords and how to choose software that actually handles property.
Does it apply to landlords?
Your qualifying incomeincludes your gross rents plus any self-employment income, before expenses. If that combined total is over the relevant threshold, you're mandated. It arrives highest incomes first (April 2026 (£50k+), then April 2027 (£30k+), then April 2028 (£20k+)); the deadlines & who's affected page has the figures.
What changes for landlords
- Keep digital records of your rental income and expenses.
- Send quarterly updates to HMRC from compatible software.
- Submit a final declaration after the tax year in place of the Self Assessment return.
If you have a trade as well as property, your qualifying income is the two combined — but you can still use one tool, provided it covers both.
What software do you need?
The key requirement is property income support. Some popular accounting tools don't handle rental income at all, and others put it behind a pricier tier — while a few landlord specialists do per-property profit, mortgage interest and rent tracking that generic accounting can't. Bridging tools that file from a spreadsheet are usually the cheapest route if you just need to comply.
See the best MTD software for landlords, or tools that can be genuinely free for a small portfolio.
How much should it cost?
Often less than landlords expect. We rank tools by the true VAT-inclusive annual cost of the cheapest plan that genuinely covers property income — not the “from £X/month” headline, which is usually ex-VAT and sometimes on a plan that can't do property at all. The finder gives you the real figure for your portfolio.
Common mistakes to avoid
- Choosing software that turns out not to support property income.
- Forgetting that a trade alongside property counts toward the same qualifying income.
- Paying for full accounting when a landlord specialist or bridging tool fits better.
- Leaving it late and setting up part-way through the tax year.
Frequently asked questions
- When does Making Tax Digital start for landlords?
- It's based on your qualifying income — the gross total of your rental income and any self-employment, before expenses. The highest incomes are mandated first, with the threshold stepping down over the following years. See the deadlines guide for the exact dates.
- Which MTD software is best for landlords?
- You need software that actually supports property income — several well-known accounting tools don't, or reserve it for a pricier tier. Our ranked list of the best MTD software for landlords covers every property-capable option by true annual cost.
- Does MTD apply to jointly owned property?
- Your share of the gross rental income counts toward your qualifying income. HMRC has specific rules for how jointly-owned property is recorded and reported, so check the guidance or your accountant for your situation.
- I only have rental income — do I need full accounting software?
- No. You need an HMRC-recognised tool that supports property income, but a landlord specialist or a bridging tool is often cheaper and better fitted than full accounting.
Keep reading
General information, not tax advice. Confirm your own position with HMRC or a qualified accountant.