Making Tax Digital
for Landlords

Does MTD for ITSA apply to me?

MTD for ITSA is being rolled out in three waves. As a landlord, you fall in scope when your combined gross income (property + any self-employment) exceeds the threshold for that wave:

• 6 April 2026: Gross income over £50,000
• 6 April 2027: Gross income over £30,000
• 6 April 2028 (planned): Gross income over £20,000 (subject to legislation)

"Gross" means before expenses. If you have a buy-to-let generating £60,000 a year in rent, you're in Wave 1 even if your net profit is much lower after mortgage interest, maintenance, and letting agent fees.

What does MTD mean for landlords?

Instead of filing a single annual Self Assessment tax return, you'll need to:

• Keep digital records of all rental income and expenses
• Submit four quarterly updates to HMRC each year via approved software
• File an end-of-period statement for each property business
• Make a final declaration (replacing the annual tax return)

The quarterly updates are summaries; they don't create a separate tax bill each quarter. You still pay tax annually in January.

What counts as property income?

HMRC includes income from:

• Buy-to-let residential properties
• Holiday lets (the special Furnished Holiday Lettings tax regime was abolished from April 2025; this income is now treated as standard property income)
• Commercial property
• Overseas property
• Room rental (above the Rent a Room allowance threshold)

Joint ownership is treated differently; only your share of the gross income counts towards the threshold.

Multiple properties

Good news: if you have multiple properties, HMRC treats them all as a single property business for MTD purposes. You don't need to submit separate updates for each property; you submit one combined quarterly update covering all UK residential lettings. Since April 2025, furnished holiday lettings are treated as standard property income and reported alongside your other UK lettings.

Which software is best for landlords?

The key for landlords is software that handles multiple income streams clearly, lets you categorise rental expenses correctly, and ideally integrates with property management tools. See our landlord software picks below.