Landlord MTD Guide: Making Tax Digital for Property Income

If you're a UK landlord with property income, this landlord MTD guide will help you understand Making Tax Digital for Income Tax and what you need to do. MTD ITSA applies to landlords as well as sole traders. Your property income from rental properties counts towards the qualifying income threshold. If you exceed it, you must use MTD-compatible software to submit quarterly updates to HMRC.

When does landlord MTD apply?

You need to use Making Tax Digital for Income Tax if you're a landlord registered for Self Assessment, you have property income from UK rentals, and your qualifying income exceeds the threshold. Qualifying income is your gross turnover from property (and self-employment if you have both) before expenses. Income under the £1,000 property allowance or £7,500 rent-a-room scheme doesn't count. If your qualifying income was over £50,000 in 2024–25, you start from 6 April 2026. Over £30,000 in 2025–26 means 6 April 2027. The threshold will extend to £20,000 for 2026–27.

What landlords must do under MTD

As a landlord, you must keep digital records of all property income and expenses. Each transaction needs a date, value, and (for expenses) the HMRC category. You submit quarterly updates to HMRC within one month of each quarter end. Quarters end 5 July, 5 October, 5 January, and 5 April. At the end of the tax year, you submit an End of Period Statement (EOPS) and Final Declaration by 31 January. The EOPS can include adjustments like capital allowances; the Final Declaration covers other income, gains, and claims.

Property income and expenses

For landlord MTD, you typically record rental income (rent received, minus any allowable expenses). Allowable expenses include mortgage interest (restricted for landlords), repairs, maintenance, insurance, letting agent fees, and similar. If you jointly own a property and only receive your share of income after expenses, HMRC has guidance on how to report. Keep digital records from the start of your first MTD quarter -don't leave it until the year end.

Software options for landlords

HMRC doesn't provide software. You need MTD-compatible software or spreadsheets with bridging software. Full accounting packages like Xero and FreeAgent work but can be expensive if you only need landlord MTD. Quartax is built for landlords and sole traders: upload your bank statement CSV, review AI-categorised transactions, and submit to HMRC. We support Barclays, Lloyds, HSBC, NatWest, Monzo, Starling, Halifax, and Santander. £39/year for one income source.

Exemptions

Some landlords are exempt from MTD. This includes those who are digitally excluded (e.g. no internet access), practising members of religious orders that forbid computer use, and certain other groups. You can apply to HMRC for an exemption. If exempt, you continue to report via the traditional Self Assessment return. Check HMRC's eligibility tool to confirm whether you need to use MTD.

Tips for landlord MTD success

Use a separate bank account for rental income and expenses to make categorisation easier. Keep digital records from day one -don't wait until the quarter end. Set calendar reminders for each quarterly deadline. HMRC is waiving late submission penalties in the first year, but it's still best to file on time and build good habits from the start.

This landlord MTD guide should give you a clear picture. The key is to act early: sign up for software, digitalise your records, and submit your first quarter on time. Quartax makes it simple for landlords -upload, review, submit.