MTD ITSA for landlords — the 2026 guide
From 6 April 2026, UK landlords with rental income above £50,000 will have to keep digital records and send HMRC quarterly summaries of property income and expenses, instead of filing a single annual Self Assessment return. This is Making Tax Digital for Income Tax (MTD ITSA). This guide covers the phased rollout, exactly what counts as qualifying income (the answer surprises most landlords), the quarterly deadlines, and what to do now.
When does MTD ITSA start?
HMRC is phasing MTD ITSA in by income level over three years. The thresholds are based on gross qualifying income from the 2024/25 tax year (and subsequent years), measured against the start of each phase:
| From | If your qualifying income exceeds | You must |
|---|---|---|
| 6 April 2026 | £50,000 | Comply with MTD ITSA |
| 6 April 2027 | £30,000 | Comply with MTD ITSA |
| 6 April 2028 | £20,000 | Comply with MTD ITSA |
If your qualifying income is below £20,000, you won't be in scope of MTD ITSA at all under current rules. HMRC may extend this further in future Budgets.
What counts as “qualifying income”?
This is the question that catches most landlords out. Qualifying income is the combined gross turnover from:
- Self-employment (sole trader trading income)
- UK property rental income
- Overseas property rental income
It is gross rent, not profit. A landlord with £55,000 of annual rent and £15,000 of expenses has a qualifying income of £55,000 — and is in scope from April 2026, even though their taxable profit is only £40,000.
It also combines self-employment and property income. A self-employed plumber earning £35,000 trading income who also rents out one property for £20,000 will exceed the £50,000 threshold and be in scope from April 2026.
What you'll have to do under MTD ITSA
- Keep digital records of every property income receipt and expense transaction in approved software. Spreadsheets are allowed only if bridged via compatible software — paper records are not.
- Submit quarterly updates to HMRC summarising income and expenses for the period. Due 7 August, 7 November, 7 February and 7 May each tax year.
- Submit a Final Declarationafter the tax year end — the equivalent of today's annual Self Assessment return. Due 31 January the following year.
- Pay your income tax by the existing Self Assessment deadlines (31 January, plus payments on account in July if applicable). Payment dates are unchanged.
Quarterly deadlines: the 2026/27 tax year
| Quarter | Covers | Submit by |
|---|---|---|
| Q1 | 6 April – 5 July 2026 | 7 August 2026 |
| Q2 | 6 July – 5 October 2026 | 7 November 2026 |
| Q3 | 6 October 2026 – 5 January 2027 | 7 February 2027 |
| Q4 | 6 January – 5 April 2027 | 7 May 2027 |
| Final Declaration | Full 2026/27 tax year | 31 January 2028 |
Limited-company landlords: exempt
MTD ITSA only applies to individuals (and partnerships, in a later phase). Limited companies don't file Self Assessment for rental income — they file Corporation Tax. Properties held in a Special Purpose Vehicle (SPV) or other ltd-company structure are out of scope of MTD ITSA.
MTD for Corporation Tax has been deferred indefinitely, so ltd-company landlords have no equivalent quarterly-reporting obligation on the horizon.
What you should be doing now (May 2026)
- Work out your 2024/25 qualifying income.If it's over £50,000 gross, you're in scope from 6 April 2026 — that's about 8 weeks away from the first quarterly deadline.
- Pick MTD-compatible software — HMRC publishes a recognised list. Make sure it covers property income (not just self-employment).
- Switch to digital record-keeping now.Don't wait until April 2027 with a year of paper receipts to digitise retroactively.
- Set up a separate landlord bank accountif you haven't. Mixing personal and rental transactions makes digital categorisation a nightmare.
- Talk to your accountant.Quarterly updates need quarterly bookkeeping — clarify who's doing what before 6 April rolls around.
Penalties for missing quarterly deadlines
HMRC uses a points-based penalty system. You accrue one point each time you miss a submission deadline. Once you hit the threshold (4 points for quarterly submitters), you get a £200 fixed penalty. Points reset to zero after a period of consistent compliance. On top of that, late payments attract interest and late-payment penalties at the usual Self Assessment rates.
FAQ
I'm below £50,000 — do I need to do anything?
Not until your threshold kicks in (April 2027 for £30k+, April 2028 for £20k+). But the single best preparation is starting now anyway — switching to digital records is the biggest workload jump.
Does jointly-owned property income count?
Each owner's share of the rent counts towards their own qualifying income. A couple jointly owning a £40,000-a-year rental each report £20,000 — neither hits the £50k threshold from that property alone.
Will I have to file four times the paperwork?
No — the quarterly submissions are summaries (totals only), not full returns. The real work is the digital record-keeping; the actual submissions take minutes if your books are in order. The Final Declaration replaces the annual Self Assessment.
Is RentFig MTD-compatible?
RentFig partners with Tax'd (an HMRC-recognised MTD ITSA provider) so you can connect your RentFig data and submit quarterly updates straight to HMRC. See the pricing page for the add-on detail.
Disclaimer: This guide is general information, not tax advice. MTD ITSA rules can change at short notice in Budgets and HMRC guidance. Always check the current HMRC position or consult a tax adviser for decisions about your own affairs.