Making Tax Digital for landlords: what you need to do
Making Tax Digital for Income Tax changes how many landlords report rental income to HMRC. Here is who it applies to, when it starts and what you need to do.
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What is Making Tax Digital for Income Tax?
If you need to use it, you keep digital records of your income and expenses, send HMRC a quarterly update from compatible software, and submit your tax return by 31 January after the end of the tax year (HMRC: find compatible software).
It does not change how you pay tax or when payments are due (HMRC: submit your tax return).
Who does it apply to?
You need to use it if you are a sole trader or a landlord registered for Self Assessment, you get income from self-employment or property, and your qualifying income is over the threshold (HMRC: check if you're eligible).
Qualifying income is your total self-employment and property income before expenses. If you own a property jointly, your share of the income counts (HMRC: work out your qualifying income). Our guide Do I need to use Making Tax Digital? goes through this in more detail.
Some people are exempt, and partnerships do not need to use it yet (HMRC: find out if you can get an exemption).
When does it start?
It is being introduced in stages, based on your qualifying income (HMRC: check if you're eligible):
| Qualifying income over | Based on your tax return for | You start from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Do I need to sign up?
HMRC says that if you need to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year, you should sign up now. From September 2026, HMRC will start to sign up people who need to use it and have not signed themselves up (HMRC: sign up for Making Tax Digital for Income Tax).
What is a quarterly update?
A quarterly update sends HMRC the totals for each category of income and expense. You do not send individual transactions. Each update covers the tax year so far, not just the last three months, so you can correct earlier figures in the next update (HMRC: send quarterly updates).
There are four updates a year. See quarterly update deadlines for 2026/27 for the dates.
There are no penalties for missing a quarterly update deadline in the 2026 to 2027 tax year, but you still need to send the updates before you can submit your tax return. From the following tax year, missed deadlines earn penalty points (HMRC: penalties for Making Tax Digital for Income Tax).
What does the software have to do?
Compatible software needs to let you create, store and correct digital records of your property income and expenses, send your quarterly updates, and add your other income and submit your tax return (HMRC: find compatible software).
You can use more than one product, but only one product for each separate submission to HMRC. Some software connects to records you already keep in a spreadsheet. HMRC says this is sometimes called bridging software.
Can I keep using a spreadsheet?
Yes. Spreadsheets can be used for your digital records, as long as they are connected to compatible software that sends your updates (HMRC: create digital records). Our guide to keeping your rental records in a spreadsheet covers what to record and has a free template.
What LandlordFile does, and what it doesn't
LandlordFile is for individual landlords with UK rental property who keep their records in a spreadsheet. You upload the spreadsheet, check the totals and send your quarterly update to HMRC.
- It works with the standard quarterly update periods.
- It does not support letting through a limited company or a partnership, self-employment income or foreign property.
- It does not submit your end-of-year tax return. You will need to do that with other compatible software. HMRC lists products in its software finder.