Making Tax Digital for Landlords: Are You in the 2026 Wave?
MTD for Income Tax mandates quarterly digital submissions from April 2026 for landlords with gross self-employed + rental income above £50,000. We walk through who's in, what changes, and the cash-aside calculator you'll need.
MTD for Income Tax Self-Assessment (MTD ITSA) phases in for landlords from April 2026. If your combined gross self-employment + rental income (2024/25 basis) exceeded £50,000, you're in. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.
What changes
- Four quarterly digital updates per tax year, plus a final declaration by 31 January.
- Must use HMRC-recognised software (spreadsheets need bridging software).
- Each property business and each self-employment is a separate stream.
- Joint-let property income split is preserved at the partner level.
Penalty regime is changing too
Points-based late submission system. Hit 4 points (quarterly) or 2 points (annual) and you trigger a £200 fixed penalty. Late payment interest at base + 2.5%, plus 5% surcharges at 30/180/365 days.
The cashflow play
Once you're submitting quarterly, your tax is much harder to defer. Set aside the right cash each quarter; don't get caught short. The MTD Readiness Calculatorworks out your mandation date and the quarterly cash-aside number.
What to do now
- Get your 2024/25 income established (the basis HMRC uses for 2026/27 mandation).
- Choose MTD-recognised software in 2025 — don't try to migrate in March 2026.
- If you'll be borderline, talk to your accountant about restructuring before April.
