The short answer. Add up the rent you received from 6 April 2025 to 5 April 2026 (your share, before any expenses or agent fees) and any self-employment turnover. If the total is more than £30,000, you need Making Tax Digital for Income Tax from 6 April 2027. If it's £20,000 or less, you're exempt. In between, next year's figure decides April 2028.
HMRC checks the 2025 to 2026 return you file by 31 January 2027 and writes to you. If no letter comes, it's still your job to sign up (gov.uk).
The thresholds
| Tax year HMRC checks | Return due | In if over | You start |
|---|---|---|---|
| 2024 to 2025 | 31 January 2026 | £50,000 | 6 April 2026 (already started) |
| 2025 to 2026 | 31 January 2027 | £30,000 | 6 April 2027 |
| 2026 to 2027 | 31 January 2028 | £20,000 | 6 April 2028 |
"Over" means more than: exactly £30,000 isn't in. Source: Find out if and when you need to use MTD for Income Tax (HMRC). Qualifying income of £20,000 or less is a permanent automatic exemption unless your income rises (exemptions).
Free calculator: your qualifying income
Type what you know. It stays in your browser: nothing is sent or saved.
What counts and what doesn't
| Counts towards the £30,000 | Doesn't count |
|---|---|
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|
Sources: Work out your qualifying income (HMRC, updated 11 September 2026), Rent a Room Scheme, Create digital records.
Married couples and civil partners: rent from a jointly owned property is normally split 50:50 for tax. If you've told HMRC on Form 17 that you own it in different shares, use your actual share.
Six worked examples
All for the 2025 to 2026 tax year, so they decide April 2027. Every figure was run through the calculator above.
| Landlord | What they have | Qualifying income | Result |
|---|---|---|---|
| Priya | One flat at £1,250 a month, plus a £38,000 NHS salary | £15,000 | Exempt (£20,000 or less). The salary doesn't count. |
| Mark and Jo | Two houses owned 50:50, rents £2,100 and £1,500 a month | £21,600 each | Not in for 2027. If 2026 to 2027 is similar, both are in from April 2028. |
| Dev | One buy-to-let at £1,200 a month, plus £22,000 turnover as a self-employed electrician | £36,400 | In from 6 April 2027. Rent alone wouldn't have done it. |
| Sarah | Three flats, £33,000 rent a year; her agent keeps 15% and pays her £28,050 | £33,000 | In from 6 April 2027. The agent's fee is an expense, so it doesn't come off. |
| Ahmed | A lodger paying £500 a month (£6,000), not declared, plus PAYE wages | £0 | Not in. Under the £7,500 Rent a Room limit. |
| Helen | Lives in Spain, lets a London flat for £2,700 a month, files the SA109 pages | £32,400 | In from 6 April 2027. Her SA109 exemption only covered 2026 to 2027. |
If you're in from April 2027: what happens when
| When | What |
|---|---|
| By 31 January 2027 | File your 2025 to 2026 return the usual way. This is the one HMRC uses to decide. |
| Early 2027 | HMRC writes if you're over £30,000. Sign up through gov.uk (or your agent does) and choose software. |
| 6 April 2027 | Start digital records of rent and expenses (1 April if your accounts run to 31 March). |
| 7 August 2027 | Quarterly update 1 (6 April to 5 July 2027) |
| 7 November 2027 | Update 2 (the year so far, to 5 October) |
| 31 January 2028 | Your 2026 to 2027 return, filed the usual way. The last one outside MTD. |
| 7 February 2028 | Update 3 (the year so far, to 5 January) |
| 7 May 2028 | Update 4 (the whole year, to 5 April 2028) |
| 31 January 2029 | 2027 to 2028 tax return, through your MTD software. Tax is still paid on 31 January and 31 July. |
Quarterly updates are totals worked out by your software, not tax returns. You send one even if nothing happened that quarter. All your UK properties count as one property business, so you send one update for them all, not one per property. Jointly let property: you can send just the income each quarter and add the expenses before filing the return (send quarterly updates, HMRC, updated 16 October 2026).
Penalties: the "no points for late updates" year was 2026 to 2027 only. From 2027 to 2028, each missed quarterly deadline earns a point, and 4 points means a £200 penalty, then £200 for each further miss. Late payment penalties start at 15 days late, but in your first year you get 30 days to pay or set up a payment plan (MTD penalties, HMRC).
The records you'll need to keep
A digital record for each rent payment and each expense: the date, the amount and the category. Below £90,000 of turnover you can record just "income" or "expense", but residential landlords also have to flag finance costs (mortgage interest), because those get tax relief at 20% instead of being deducted.
- Income: rent, plus anything else tenants pay you for the let, such as premiums.
- Expenses (the same categories as the property pages of the tax return): rent, rates, insurance and ground rent; repairs and maintenance; finance costs; legal, management and professional fees (agent fees go here); services such as cleaning and utilities you pay; travel; other.
- Keep the bank statements and invoices as well, as you do now.
Spreadsheets are allowed with "bridging" software that sends the figures from the sheet to HMRC. The figures must move digitally: linked cells, CSV import or an upload are fine; retyping or copy-and-paste between sheets is not. Find options with HMRC's software finder. HMRC doesn't recommend products, and neither do we.
Common mistakes
- Using profit. "I only make £12,000 after the mortgage" doesn't matter. The test is rent before costs.
- Using what the agent pays you. Use the rent the tenant paid. Add the agent's fee back.
- Counting the whole of a joint property. Only your share counts.
- Forgetting the side business. £18,000 of rent and £13,000 of freelance work is £31,000: in.
- Counting the deposit. A deposit you hold for the tenant isn't rent. Any part you keep for damage or unpaid rent usually is income: ask your accountant how to treat it.
- Waiting for the letter. HMRC says it's your responsibility to check and sign up even if you don't get one.
A prompt to sort last year's rent figures
If your rent and costs are scattered across bank statements and agent statements, paste them into ChatGPT, Gemini or Claude with this. Take out names, addresses and account numbers first.
I'm a UK landlord. Below are my rent and property cost lines for 6 April 2025 to 5 April 2026 (bank lines and letting agent statements). Please: 1. Make a table of rent received per property, using the gross rent the tenant paid (add back any agent fee the agent deducted). 2. Show my share where I've said a property is jointly owned. 3. List the costs separately under: rent, rates, insurance, ground rent; repairs and maintenance; finance costs; legal, management and professional fees; services; travel; other. 4. Give the total gross rent (my share) and add my self-employment turnover of £[amount or 0]. 5. Tell me whether that total is more than £30,000, and list anything you weren't sure how to treat. Don't give tax advice; flag anything I should check with an accountant. [paste lines here]
Made by Polytheseus. We make AI skills, prompt packs and free tools for people with repetitive paperwork. This page and its calculator are free, with no sign-up. A landlord records sheet with property income headings and quarterly totals that match the MTD update periods is next on our list.
Got a bookkeeper or accountant? Send them this page. Bookkeepers will find the client-facing version, with a deadline checker and a client email, in our free MTD guide for bookkeepers. More free tools: polytheseus.com/tools.
FAQ
Do landlords need Making Tax Digital from April 2027?
Yes, if your qualifying income for 2025 to 2026 is more than £30,000. That's your gross rent (your share) plus any self-employment turnover, from the return due on 31 January 2027.
Is the threshold based on rent or profit?
Rent. £32,000 of rent with £14,000 of costs is still over £30,000.
What if I own property through a limited company?
MTD for Income Tax is for individuals who file Self Assessment. Rent your company receives is in its Corporation Tax return, not your qualifying income. Dividends the company pays you don't count either.
I sold my rental during the year. Does it still count?
If you still have other property or self-employment income, yes: gov.uk says income from a source that stopped is included. If all your property and self-employment income stopped, tell HMRC before it signs you up.
Can I be exempt if I'm not good with computers?
Only if it isn't reasonable for you to use software at all, for example because of age, disability or no internet access where you live. HMRC won't accept "I've always filed on paper" or "it costs time and money". You apply for this digital exclusion exemption, and someone can help you, such as an agent, friend or family member.
Does MTD apply in Scotland, Wales and Northern Ireland?
Yes. MTD for Income Tax is a UK-wide HMRC rule, so the thresholds are the same everywhere.
This page explains HMRC's published rules in plain English. It's an estimate tool and general information, not tax advice: HMRC decides from your return, and your circumstances may differ. Check gov.uk or a qualified accountant. Last checked against gov.uk on 29 October 2026. Rules for 2028 onwards may change.