Making Tax Digital for landlords: the threshold, and what counts towards it

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Landlords with qualifying income over £30,000 must use Making Tax Digital for Income Tax from 6 April 2027. The test is on rent received before expenses, not on profit, so a landlord with a large mortgage and little profit can still be caught.

Checked against GOV.UK guidance on 3 October 2026. General information, not advice.

The thresholds

From 6 April 2026: Qualifying income over £50,000 in the 2024 to 2025 tax year.
From 6 April 2027: Qualifying income over £30,000 in the 2025 to 2026 tax year.
From 6 April 2028: Qualifying income over £20,000 in the 2026 to 2027 tax year.

Use the checker to test your own figures.

What counts towards a landlord's threshold

Rent before expenses: Qualifying income is the total before expenses. Mortgage interest, repairs and agent fees do not reduce it.
Self-employment income as well: Property income and self-employment turnover are added together. £18,000 of rent plus £15,000 of self-employed sales is £33,000.
Overseas property: If you are UK tax resident, both UK and foreign property income count. If you are not UK tax resident, only UK property income counts.
What does not count: Employment income taxed through PAYE, dividends, pensions, and your share of partnership profit.

Jointly owned property

Only your share counts. GOV.UK's own example: two siblings jointly own a property producing £50,000 of income and split it equally. Each has qualifying income of £25,000, so neither is brought in by the £30,000 threshold on that property alone.

If you only receive notice of your share after expenses have been deducted, HMRC assesses that net figure as your qualifying income.

What changes once you are in

Digital records: Rent and expenses recorded in compatible software.
Quarterly updates: Four a year, due 7 August, 7 November, 7 February and 7 May.
Tax return: Still required after the year ends, sent through the same software.
Penalties: From the 2027 to 2028 tax year, one point per missed deadline, and a £200 penalty at 4 points.

Sources

GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax, Work out your qualifying income and Penalties.