Making Tax Digital for landlords officially launched on 6 April 2026. For landlords earning over £50,000 in combined gross income from property and self-employment, the way you report your income to HMRC has fundamentally changed.
Instead of relying solely on a single annual Self Assessment return, you must now keep digital records and submit quarterly updates through compatible software. Also, you must submit summaries every three months using HMRC-compatible software.
This guide breaks down the rules around Making Tax Digital for landlords.
Here, you’ll get to know:
- What is Making Tax Digital for Landlords?
- When Does Making Tax Digital Start for Landlords?
- What Do You Actually Have to Do?
- And Much More…
Let’s get into it!
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What is Making Tax Digital for Landlords?
Making Tax Digital for Landlords is part of HMRC’s wider Making Tax Digital (MTD) programme. It specifically applies to landlords earning rental income under Income Tax Self Assessment.
Under the new system, landlords will need to do a few things. These include:
- Keeping digital records of rental income and expenses
- Using HMRC-approved software
- Submitting quarterly updates instead of one annual return
- Finalising their tax position at year-end
As a result, reporting obligations are spread throughout the year rather than being concentrated into a single annual submission.
When Does Making Tax Digital Start for Landlords?
Making Tax Digital (MTD) for Income Tax began rolling out for landlords on 6 April 2026.
Here is how the Making Tax Digital for landlords threshold breaks down across the current and upcoming tax years:
| Phase | Start Date | Income Threshold |
| Phase 1 | 6 April 2026 | £50,000 or more (qualifying income) |
| Phase 2 | 6 April 2027 | £30,000 or more |
| Phase 3 | 6 April 2028 | £20,000 or more |
So if your gross rental income is over £50,000 in the 2024/25 tax year, you are already required to comply with Making Tax Digital for landlords from April 2026.
The key word here for you to remember is “qualifying income.” This refers to the combined gross income from self-employment and property businesses before expenses are deducted. It does not mean your profit.
Also, if you have self-employment income, HMRC adds the two together for the threshold test.
What Do You Actually Have to Do?
Once you have an understanding of exactly what Making Tax Digital for landlords is, you might be wondering what you actually have to do.
Well, under Making Tax Digital for income tax for landlords, you have three main obligations:
-
Keep Digital Records
You need to record all your rental income and expenses digitally. These records must be maintained using HMRC-recognised MTD-compatible software. Remember to use software that is recognised by HMRC.
-
Send Quarterly Updates
Now, four times a year, you need to submit a summary of your income and expenses to HMRC. You can do it through your software. The quarterly deadlines are:
| Standard Quarter | Deadline |
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
Remember that these updates are summaries. They are not final tax calculations. Basically, they give HMRC a running picture of your finances throughout the year.
-
Submit a Final Declaration
At the end of the tax year, you submit a final declaration through your software. This replaces your old self-assessment tax return. The deadline remains 31 January following the end of the tax year. So the deadline is the same as before.
Remember that the dates for actually paying your Income Tax haven’t changed. Tax is still due on 31 January and (where relevant) 31 July for payments on account.
Choosing The Making Tax Digital For Landlords Best Software
You must use Making Tax Digital compatible software landlords can link directly to HMRC systems. This is called bridging software or dedicated cloud accounting software.
There are many options available on the market today. The right choice, of course, depends on how many properties you own. It also depends on how much time you want to spend on bookkeeping.
Let us look at the most popular options available for the Making Tax Digital for landlords 2026 rollout.
| Software | Best for | Ease of use |
| QuickBooks | General landlords | Easy |
| Xero | Growing portfolios | Medium |
| FreeAgent | Small landlords | Very easy |
| Sage | Larger setups | Medium to complex |
Many property owners choose QuickBooks Making Tax Digital for landlords setups. This is because QuickBooks has a clean mobile app. You can also use the official GOV.UK. Choose the right software for Making Tax Digital for Income Tax tool.
Making Tax Digital for landlords best software depends on how many properties you manage. And, also on how comfortable you are with accounting tools.
What Is the Making Tax Digital Landlords Deadline
Under Making Tax Digital for landlords, you have five distinct deadlines.
As already discussed, here is the official schedule for the Making Tax Digital landlords deadline cycle:
- Quarter 1 (6 April to 5 July): Submission deadline is 7 August.
- Quarter 2 (6 July to 5 October): Submission deadline is 7 November.
- Quarter 3 (6 October to 5 January): Submission deadline is 7 February.
- Quarter 4 (6 January to 5 April): Submission deadline is 7 May.
- The Final Declaration: Submission deadline is 31 January of the following year.
The Final Declaration is where you finalise your actual tax bill for the year. Here, you can add any additional information and claim eligible tax reliefs.
Key Making Tax Digital for Landlords Rules to Know
Here are Making Tax Digital for landlords rules you must be aware of.
- Gross vs. Profit: If your rental income is over £50,000 but your mortgage interest and repairs reduce your actual profit to £10,000, you still must comply right now. This is because compliance is based on qualifying gross income rather than profit.
- Jointly Owned Properties: Rental income is generally allocated according to each owner’s beneficial ownership share. This is split according to your ownership share. Then each individual must evaluate their own total threshold.
- No Multiplied Tax Payments: A common misconception is that you have to pay tax quarterly. Well, you do not have to. Your payment timelines (31 January and 31 July for payments on account) stay exactly the same.
- Limited Companies are Different: These specific rules only apply to individuals who pay income tax through Self Assessment. So if your rental properties sit inside a limited company, you do not have to sign up for this system yet. Limited companies pay Corporation Tax. This will be dealt with under a separate digital rollout later down the line.
Wrapping Up: Making Tax Digital for Landlords
Making Tax Digital for Landlords is a full shift in how landlords report income in the UK. It is not just a small update to tax rules.
Some landlords will find it simple once set up. Others may feel it adds extra admin. Either way, early preparation makes a big difference.
At Cheap Accountants in London, we can make the whole process of Making Tax Digital for Landlords easier.
From bookkeeping to VAT returns, we manage it all so you can focus on growing your business.
How Cheap Accountants in London Can Help
Making Tax Digital for landlords is a lot more straightforward when you have the right support.
We work with landlords at every stage of the MTD process, from helping you choose the right HMRC-compatible software and setting up your digital records correctly, to handling your quarterly submissions and final declaration on your behalf.
We can also assist with quarterly MTD submissions, final declarations, tax planning, and refund claims where applicable.
Disclaimer: All the information provided in this article on Making Tax Digital for Landlords, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.