Who Making Tax Digital applies to

From 6 April 2026, landlords will need to use Making Tax Digital (MTD) for Income Tax if their combined annual income from property and self-employment is over £50,000. This figure is based on total income received, not profit, so expenses are not deducted when assessing whether the threshold is met.

What Making Tax Digital means for you

Making Tax Digital changes how you keep records and report your income. Instead of completing everything once a year, you’ll be expected to keep your records digitally and submit information to HMRC throughout the year using compatible software.

In practice, this means keeping digital records of your income and expenses, sending quarterly updates to HMRC, and submitting your final tax return through the software. Any other income, such as employment income or capital gains, must also be included before your return is finalised.

When to sign up

If MTD applies to you from April 2026, it’s strongly recommended that you sign up before that date so you have time to prepare and understand the new process.

HMRC will check that you’re eligible when you apply. If you use an accountant or tax agent, they can sign you up on your behalf. It’s important to note that you’ll still need to submit a normal Self Assessment tax return for the tax year immediately before you move onto Making Tax Digital.

Who can sign up

To join Making Tax Digital, you must already be registered for Self Assessment and have submitted at least one tax return in the last two years.

Signing up early (optional)

Some landlords may choose to sign up voluntarily before they are legally required to. This can be helpful if you want time to get used to digital record-keeping and quarterly reporting.

You can choose to sign up either for the 2025–26 tax year or from 6 April 2026 for the 2026–27 tax year. If you do sign up early, it’s important to understand what penalty rules apply, as these can differ from those who join when required.

Exemptions

Some landlords may qualify for an exemption from Making Tax Digital, for example due to age, disability, or lack of access to digital services. If you qualify for an exemption, you do not need to sign up.

Penalties – what you should know

For landlords who are required to use MTD from April 2026, HMRC will not issue penalty points for late quarterly updates during the first year (2026–27). However, penalties will still apply if your annual tax return is late or if your tax is paid after the deadline.

What you’ll need to sign up

When signing up, you’ll need to provide details about your property income and, if applicable, any self-employment income. This includes the date you started receiving property income (if within the last two years) and confirmation of the tax year you’ll begin using MTD.

If you’re also self-employed, you’ll need your business name, address and the type of work you do. If you have more than one income source, each one must be checked and added during the sign-up process.

How to sign up

You’ll sign up using the same Government Gateway login you already use for Self Assessment. HMRC may also ask you to confirm your identity, either by using a passport or driving licence, or by answering security questions based on information they already hold.

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