Making Tax Digital for Income Tax Self Assessment for landlords

01 Oct 2025

MTD for Landlords - what you need to know

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

From 6 April 2028, landlords with a qualifying income over £20,000 in the 2026 to 2027 tax year, will need to use Making Tax Digital for Income Tax.

Who is likely to be affected?

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.

What must be done once in scope?

Other Self Assessment triggers

Risks and exemptions

We hope this article was useful, if you have any questions our team will be happy to help.

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Making Tax Digital for Income Tax Self Assessment for landlords

MTD for Landlords - what you need to know

Who is likely to be affected?

What is this change?

“Making tax digital (MTD) for Income Tax” is HMRC’s plan to modernise tax reporting for landlords.

Digitalising our service will bring customer benefits by:

A phased rollout

What must be done once in scope?

Other Self Assessment triggers

Risks and exemptions

Instant rental valuation

Find out how much you could let your property for.