Making Tax Digital for Income Tax is already operating for the first mandatory group. For a landlord, the starting point is the individual’s qualifying income and circumstances, followed by the property-business records that software must support.
Check the relevant income year
Under HMRC’s eligibility rules, qualifying income over £50,000 in 2024/25 brings an eligible individual into MTD from 6 April 2026. The later thresholds are over £30,000 in 2025/26 for April 2027 and over £20,000 in 2026/27 for April 2028. These are strict “over” thresholds, subject to exemptions.
Qualifying income generally combines gross self-employment and property income before expenses. For jointly owned property, use the individual’s share and HMRC’s specific rules, rather than automatically treating the whole property’s rent as each owner’s income. See the qualifying-income calculation.
Illustration: an equal share of £60,000 gross rent is £30,000. Adding £25,000 of qualifying sole-trade income gives that owner £55,000. For 2026/27, the relevant 2024/25 figures and exemptions still need checking. The example does not establish another co-owner’s position.
Property businesses, not one return per address
HMRC treats UK property income and foreign property income as separate property businesses for MTD purposes. Do not assume that each individual property needs a separate quarterly update. Separate sole trades may also need their own updates. Follow the income-source rules, including what to do when a source begins or ceases.
ObvioTech recommendation: maintain a property-level ledger for your own reconciliation, but map it deliberately to the reporting businesses required by HMRC. Agree with any co-owner or agent how each person’s share and expenses will be recorded; do not submit the same total twice.
Dates and annual reporting
Standard quarterly-update deadlines for 2026/27 are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Updates are cumulative, with standard and calendar-period options described in HMRC’s update guidance. They are not four standalone tax returns.
The annual return remains a separate step: the 2026/27 return is due through compatible software by 31 January 2028. Keep the earlier 2025/26 return deadline separate. See HMRC’s workflow.
Choose the exact software capability
Use HMRC’s software finder for your circumstances. Check UK property, foreign property and any sole-trade support, annual-return functionality, agent access, price and export terms. VAT compatibility alone does not establish Income Tax capability.
Spreadsheets can form part of a compatible solution with the required digital links; an accounting package is not universally superior. We have not tested or ranked the products in this article. A free bank-linked offer may have account and activity conditions, so obtain the current terms rather than assuming every account includes the same package.
Registration, exemptions and missed updates
Check your MTD status, including whether HMRC has signed you up. An ordinary Self Assessment login does not prove the setup is complete.
Some exemptions are automatic; others require an application. Do not assume that every exemption is granted simply by contacting HMRC or that age alone establishes digital exclusion.
Late quarterly updates do not attract penalty points in 2026/27, but the updates remain required. Annual-return and late-payment rules are separate. This first-year provision is explained in HMRC’s agent toolkit. General information only: seek qualified advice for your own reporting position.
