MTD for Landlords: What Changes in 2026

Introduction

Making Tax Digital for Income Tax (MTD ITSA) applies to landlords as well as sole traders. If your rental income is above the threshold, you will need to keep digital records and send quarterly updates to HMRC.

This guide covers what MTD means for landlords and how to prepare for the 2026 rollout.

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Does MTD apply to landlords?

Yes. MTD ITSA applies to property income. If your combined gross income from property and self-employment exceeds the threshold, you will be required to join.

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Timeline and thresholds

HMRC's current plan is:

• Over GBP 50,000 total income: MTD ITSA from April 2026
• Over GBP 30,000 total income: MTD ITSA from April 2027

The total is based on gross income before expenses and includes rental income plus any self-employment income.

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What records do landlords need to keep?

Digital records for property income typically include:

• rent received
• letting agent fees
• repairs and maintenance
• insurance
• service charges and ground rent
• replacement of domestic items

You should also keep evidence such as invoices, receipts, and statements.

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Quarterly updates and year-end reporting

Under MTD ITSA, landlords will submit:

1. Quarterly updates (summary income and expenses)
2. An End of Period Statement for property income
3. A final declaration for the full tax year

This replaces the annual Self Assessment-only process for in-scope landlords.

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Joint ownership and agents

If you own property jointly, each owner is responsible for reporting their share. If you use a letting agent, you still need to make sure your digital records are complete and submissions are made on time.

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How to prepare now

• Start tracking income and expenses digitally
• Keep evidence organized throughout the year
• Choose MTD compatible software before the rollout
• Review your records at least monthly

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How QTax helps

QTax keeps property income records organized and prepares quarterly updates for you. It is built to support MTD ITSA compliance so you can stay aligned with the 2026 changes.

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FAQs

Does MTD apply to furnished holiday lets?

Rules can vary, and HMRC guidance can change. If you have property income, assume MTD ITSA will apply when your total income exceeds the threshold.

Do I still need to keep paper records?

You should keep evidence of income and expenses, but the records you submit must be digital.

What if I only rent out one property?

If your total property income is above the threshold, MTD ITSA still applies regardless of the number of properties.

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Conclusion

MTD ITSA is a major change for landlords. If your property income puts you above the threshold, start preparing now with digital records and MTD compatible software to avoid a last-minute rush in 2026.