Making Tax Digital for Landlords: Who Is In, When, and What Changes in 2027
The short answer
Landlords registered for Self Assessment with more than £50,000 of property and self-employment income, counted before expenses, have had to use Making Tax Digital since 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. You keep digital records and send quarterly updates by 7 August, 7 November, 7 February and 7 May.
At a glance
| Over £50,000 | From 6 April 2026 |
|---|---|
| Over £30,000 | From 6 April 2027 (based on 2025 to 2026 income) |
| Over £20,000 | From 6 April 2028 |
| Qualifying income | Gross property plus self-employment income, before expenses |
| Quarterly deadlines | 7 August, 7 November, 7 February, 7 May |
| Where | The whole UK, including Scotland |
| Property tax rates from April 2027 | 22%, 42%, 47% (Finance Act 2026; not set for Scottish taxpayers) |
Making Tax Digital (MTD) for Income Tax changes how landlords report to HMRC. Instead of one tax return a year, you keep digital records and send HMRC a short update every quarter, then a final declaration after the tax year ends. It started on 6 April 2026 for people with the highest incomes, and it is widening each year.
MTD applies across the UK, including Scotland. This guide covers who is in, when, what counts as income, the quarterly deadlines, and the separate change to property tax rates from April 2027.
Who has to use it, and when
HMRC's guide, find out if and when you need to use Making Tax Digital, sets out the timetable. It applies to landlords and sole traders registered for Self Assessment.
| Qualifying income over | Based on your tax return for | You must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
HMRC looks at an earlier tax return to decide if you are in. So the return you file for 2025 to 2026 decides whether you join in April 2027.
What counts as "qualifying income"
Qualifying income is your income from property plus any self-employment, added together, before expenses. That is the key point. A landlord with £32,000 of rent and £15,000 of costs has qualifying income of £32,000, not £17,000, and will be in from April 2027.
If you own property jointly, you count your share. Employment income and pensions do not count towards the threshold. There are exemptions, for example for people who cannot use digital tools, and you can apply to HMRC if you think one applies.
The quarterly deadlines
Quarterly updates are a summary of your income and expenses for each quarter. The deadlines each year are:
| 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 |
The next deadline for anyone already in is 7 November 2026. After the year ends you send a final declaration, by 31 January as now. HMRC has a points-based penalty system for late updates, so set reminders.
What you need
- Software that works with MTD. HMRC keeps a list. Some is free.
- Digital records of each rent payment and each expense, kept as you go. A shoebox of receipts turned into a spreadsheet in January will not work any more.
- A clear record per property. It makes the quarterly totals quick and keeps your figures defensible if HMRC asks questions.
A rent statement for each tenancy and a yearly income and expense summary give you a clean set of figures to feed into your software or hand to your accountant.
New property income tax rates from April 2027
This is a separate change, but it lands the same month as the £30,000 threshold. The Finance Act 2026 creates new income tax rates for property income from the 2027 to 2028 tax year:
- property basic rate: 22%
- property higher rate: 42%
- property additional rate: 47%
That is 2 percentage points above the current rates. The government's policy paper says the measure applies in England, Wales and Northern Ireland, and that the government will work with the Scottish and Welsh governments so they can set their own property rates. If you pay Scottish income tax, these rates do not automatically apply to you.
A Budget is expected on 28 October 2026, and tax rules can change in any Budget. Check again afterwards, and speak to an accountant before making decisions based on these rates.
What to do now
- Add up last year's gross rent and any self-employment income. If it was over £30,000 for 2025 to 2026, plan to join MTD from April 2027.
- Choose software before April, and try it for a quarter if you can.
- Keep digital records from now, even if you are not yet in.
- Keep one set of figures per property.
This article is general guidance as at 3 October 2026. It is not tax advice. Tax rules can change, especially at a Budget. Speak to an accountant about your own position.