Making Tax Digital in April 2026: Which landlords qualify?
12.01.2026
5 min read
25.01.2023
7 min read
From April 2026, many UK landlords will start reporting their rental income under Making Tax Digital for Income Tax (MTD for IT).
But not all landlords are affected at the same time — and the rules are more nuanced than they first appear.
Whether you need to follow MTD in April 2026 depends on how much qualifying income you earn, how your property is owned, and what other income you receive alongside rent.
This guide explains:
By the end, you should be able to answer one key question with confidence: “Do I personally need to follow MTD in April 2026?”
(Please note that this post is for educational purposes and does not constitute professional advice – always refer to your accountant/tax advisor)
Making Tax Digital for Income Tax (MTD for IT) is a reform to the Self Assessment system.
Instead of submitting one annual tax return, affected landlords will need to:
MTD does not mean:
Quarterly updates are summaries, not tax bills. The tax payment timetable remains separate.
From 6 April 2026, MTD for IT becomes mandatory for landlords whose qualifying income exceeds £50,000 per year.
This threshold applies to:
If your qualifying income is £50,001 or more, you must follow MTD from April 2026.
If it’s £50,000 or less, you won’t — at least not yet.
This is one of the most misunderstood parts of MTD.
Qualifying income includes:
It is measured as gross income, before expenses.
It does not include:
For MTD purposes, the relevant figure is £55,000, not £37,000.
👉 This landlord must follow MTD from April 2026, even though their profit is well below £50,000.
MTD is being phased in gradually.
| Start date | Qualifying income threshold |
|---|---|
| April 2026 | Over £50,000 |
| April 2027 | Over £30,000 |
| April 2028 | Over £20,000 |
Even if you’re not caught in April 2026, you may be affected in later years.
This is why landlords just below the threshold should still prepare early.
Example
This landlord:
Key takeaway:
Being under £50,000 only delays MTD — it doesn’t remove it entirely for most landlords.
MTD looks at combined qualifying income.
Example
Even though neither income source exceeds £50,000 on its own, together they do.
👉 This landlord must follow MTD from April 2026.
This catches many landlords by surprise — particularly those with a small side business or consultancy.
MTD thresholds apply per individual, not per property.
Each landlord’s share of income is £40,000.
👉 Neither landlord needs to follow MTD in April 2026.
However:
If the split is 75/25:
Ownership proportions matter — and HMRC will expect digital records to reflect them accurately.
Marriage does not change how MTD thresholds work.
Each individual is assessed separately, even if:
This makes correct allocation of income and expenses especially important under MTD.
This is where many landlords feel uncertain.
Example
This landlord is:
But they are very close.
A small rent increase, a new tenant, or extra work could push them over £50,000 — triggering MTD with little notice.
If you’re below £50,000:
Landlords who leave it too late risk:
No.
MTD for IT applies to individuals, not companies.
If all your rental properties are held within a limited company, you are not affected by MTD for IT.
If you have both personal and company-owned properties, only the personally owned income is relevant for MTD.
If you’re over the £50,000 threshold, from April 2026 you’ll need to:
Spreadsheets alone may not be sufficient unless they’re properly bridged to HMRC.
Most landlords will need MTD-compatible software to stay compliant.
MTD is not just a filing change. It’s a change in how landlords manage their finances.
Landlords who prepare early tend to:
Those who don’t often struggle — especially in the first year.
You will need to follow MTD from April 2026 if:
If you’re below the threshold, MTD may still be coming soon — and preparation is key.
The first step to MTD-readiness is working out whether it applies to you at all — especially with joint ownership, mixed income, or multiple properties.
Check if you’re MTD-ready with Hammock →
👉 https://usehammock.com/
Hammock helps landlords understand their income, stay compliant, and prepare for Making Tax Digital — without the guesswork.
