If you earn income from renting out property, Making Tax Digital (MTD) for Income Tax may apply to you.

Under MTD, landlords who meet the qualifying income threshold need to keep digital records of their property income and expenses and use compatible software to send information to HMRC.

MTD is being introduced in stages:

• From 6 April 2026 if your qualifying income is over £50,000

• From 6 April 2027 if it is over £30,000

• From 6 April 2028 if it is over £20,000

The important point is that these thresholds are based on gross qualifying income before expenses, not your profit.

What will you need to record?

Your digital records may include things such as:

• rent received

• letting agent fees

• insurance

• repairs and maintenance

• other allowable property expenses

If you also have self-employment income, this is generally combined with your property income when determining your qualifying income for MTD.

For jointly owned property, it is normally your share of the property income that counts.

What happens during the year?

You will use compatible software to keep your records and send quarterly updates to HMRC.

These updates contain summaries of your income and expenses. They are not four separate tax returns, and they do not mean that you pay Income Tax four times a year.

You will still need to complete the required year-end process and submit your tax return through compatible software.