For landlords · 7 min read
Making Tax Digital for landlords: who is in scope from April 2026
Since 6 April 2026, unincorporated landlords whose combined gross property and self-employment income exceeds £50,000 must keep digital records and send HMRC a quarterly update using compatible software, followed by a Final Declaration by 31 January. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028. Qualifying income is measured on gross receipts, before any expenses or allowances — which catches more landlords than they expect. Landlords who hold property through a limited company are outside Making Tax Digital for Income Tax.
Frequently asked questions
Do all landlords have to use Making Tax Digital?
No. From 6 April 2026 it applies to unincorporated landlords and sole traders whose combined gross property and self-employment income exceeds £50,000. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028.
Is the £50,000 threshold based on profit or rent received?
Gross income, before expenses or allowances. A landlord receiving £55,000 in rent is in scope even if very little remains after mortgage interest and costs.
Does property income count on its own?
No, it is combined with sole-trader self-employment income. £35,000 of rent plus £20,000 of freelance income exceeds the threshold even though neither reaches it alone.
What replaces the Self Assessment return?
Four quarterly updates through the year, then a Final Declaration by 31 January following the end of the tax year. Each quarterly update is cumulative from 6 April rather than covering only that quarter.
Are limited company landlords affected?
No. Making Tax Digital for Income Tax applies to unincorporated landlords. Companies continue to file company accounts and pay Corporation Tax.
Can I still use a spreadsheet?
Only alongside compatible software that can send the quarterly updates to HMRC. A spreadsheet written up at year end does not satisfy the digital record-keeping requirement by itself.