- If your property and self-employment income added together was over £50,000 in 2024–25, you've been in Making Tax Digital since 6 April 2026.
- It's based on gross income (rent received before expenses), not profit. For jointly owned property, only your share counts.
- Next in: over £30,000 from 6 April 2027 (based on 2025–26 income), then over £20,000 from April 2028.
- Updates go to HMRC every quarter through approved software. There are no penalty points for late quarterly updates in the first year, but late tax returns and late payment are still penalised.
Who has to join, and when
| Your qualifying income | Measured in tax year | You join from |
|---|---|---|
| Over £50,000 | 2024–25 | 6 April 2026 (now) |
| Over £30,000 | 2025–26 | 6 April 2027 |
| Over £20,000 | 2026–27 | 6 April 2028 |
Qualifying income is your rental income plus any self-employment income, before expenses. A landlord collecting £2,600 a month on one property has £31,200 of qualifying income, so would be in from April 2027 even if the profit is far lower. Wages, pensions, dividends and partnership income don't count, and partnerships themselves aren't in yet.
How the quarterly cycle works
| Quarter covers | Update due |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
Each update is a running total of income and expenses for the year so far, by category. HMRC doesn't receive your receipts. If nothing happened in a quarter, you still send a nil update. Mistakes can be corrected in the next one. You can choose calendar quarters instead, but you must pick that in your software before your first update. The year-end tax return is still due by 31 January, and payment dates don't change.
Penalties, and the first-year soft landing
HMRC has confirmed there are no penalties for missing a quarterly update deadline in 2026–27. From 2027–28, each missed deadline earns a point, and at 4 points you get a £200 penalty, with another £200 for each further miss. Late payment is penalised separately, from day 15 (day 30 in your first year).
Software and exemptions
You need software that HMRC recognises. Some products are free for simple cases, and "bridging" software can send updates from your existing spreadsheet. HMRC doesn't provide its own. If age, health, disability or lack of internet access makes digital filing unreasonable, you can apply to be exempt as digitally excluded. Unfamiliarity with software or its cost doesn't qualify.
Also coming in April 2027: rental profits are due to be taxed at 24%, 44% and 49%, four points above today's rates (announced in the Autumn Budget on 28 October 2026), with mortgage interest relief expected to follow at the new basic rate.
Key dates
What to do now
- Work out your qualifying income for 2025–26: gross rents plus any self-employment turnover, your share only for joint property.
- If it's over £30,000, choose software now rather than in March, and try a voluntary quarter first.
- Keep digital records from day one: rent received and expenses, by property.
- Ask your accountant whether calendar quarters suit you better, and how the April 2027 rate rise affects your plans.
- Check your letting statements are digital and itemised, so they drop straight into your software.
Landlords who use Morgan Prescott's full management get clear monthly statements of rent received and costs paid, which makes quarterly updates far easier for you or your accountant to prepare.
See full management →Questions landlords ask
Do landlords have to use Making Tax Digital?
Is the Making Tax Digital threshold based on profit or rent?
When is the next MTD quarterly deadline?
Is there a penalty for a late quarterly update?
- GOV.UK: Check if you're eligible for Making Tax Digital for Income Tax
- GOV.UK: Work out your qualifying income
- GOV.UK: Send quarterly updates
- GOV.UK: Penalties for Making Tax Digital for Income Tax
- GOV.UK: Find out if you can get an exemption
- GOV.UK: Find software for Making Tax Digital for Income Tax
- GOV.UK: Change to tax rates for property, savings and dividend income (technical note)
Next update: Updated for the Autumn Budget of 28 October 2026.
General information, not tax advice. Rules and figures change, so check GOV.UK or a qualified adviser before acting.