Making tax digital for landlords Income Tax self assessment

01 Oct 2025

Jon & Scott, Directors

Introducing MTD

In March 2025, the government set out plans to lower the income threshold.

From 6 April 2026, landlords with a qualifying income over £50,000 in 2024/25 must keep digital records and submit quarterly updates of income & expenses via MTD-compatible software instead of a single annual return.

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What you need to know

Here's a comprehensive breakdown of all the vital details you need to confidently take the next steps in complying with Making Tax Digital (MTD).

Whether you're managing a single rental property or a portfolio, this guide will walk you through the key requirements, deadlines, and practical tips to ensure you're fully prepared and compliant with HMRC's digital tax reporting rules.

Who will need to use Making Tax Digital for Income Tax?

What is this change?

A phased rollout

MTD for Income Tax is being introduced in stages based on qualifying (gross) income from self-employment + property.

HMRC defines “qualifying income” as total gross income from those sources (before expenses); it excludes employment, dividends, interest, pensions, etc.

Here is the current timetable:

Effective date	Qualifying income threshold	Who is affected	Notes
6 April 2026	Over £50,000 in 2024/25	Sole traders and landlords whose combined gross income (self-employment + property) exceeds £50,000 Gov link	HMRC will review 2024/25 tax returns and notify those in scope.
6 April 2027	Over £30,000 in 2025/26	Individuals not previously subject to MTD who exceed this threshold	The threshold is lower, so many more will become subject to MTD.
6 April 2028	Over £20,000 in 2026/27	Government plans to lower the threshold further, bringing more taxpayers into the regime	Confirmed in the 2025 Spring Statement and technical papers.
Ongoing Rule	—	All individuals once in scope	Once you are in scope, you generally remain in MTD for at least three years, even if your income falls below the threshold in later years.