If you rent out property, Making Tax Digital for Income Tax applies to you in exactly the same way it applies to sole traders — based on your rental income, not on how many properties you own or whether letting is your main job.
What counts as your "qualifying income"
It's your gross rental income before expenses — not profit. A landlord with £45,000 in rent and £20,000 in mortgage interest, letting fees and repairs still has £45,000 of qualifying income, not £25,000.
The thresholds and dates
| Gross rental income over | Based on tax year | Mandatory from |
|---|---|---|
| £50,000 | 2024–25 | 6 April 2026 |
| £30,000 | 2025–26 | 6 April 2027 |
| £20,000 | 2026–27 | 6 April 2028 |
Not sure where you stand? Run the free 3-question checker — no email needed.
Check my status →Joint ownership — a common landlord trip-up
If you own a property jointly, you only count your share of the rent. A couple splitting £30,000 of gross rent 50/50 each have £15,000 of qualifying income from that property, not £30,000 each.
Furnished holiday lets
The separate Furnished Holiday Lettings tax regime was abolished from April 2025. From April 2026, that income is rolled into your ordinary property business for MTD purposes — it's assessed the same as any other letting income.
Non-resident landlords
Living overseas doesn't exempt you. If your UK property income is above the relevant threshold, you're in scope on the same dates as a UK-resident landlord. This runs alongside the separate Non-Resident Landlord Scheme, which deals with tax withheld at source — the two rules answer different questions.
Software built for landlords
General accounting software works, but landlord-specific tools like Hammock are built to separate income and expenses per property automatically, which matters more once you're submitting quarterly rather than once a year. See our comparison of MTD software for landlords.
FAQ
Does MTD apply if letting isn't my main income?
Yes — MTD looks at the amount of qualifying income, not whether property is your primary job.
What about a single rental flat, not a portfolio?
If the gross rent from that one property is over the threshold for the relevant tax year, you're in scope regardless of how many properties you own.