MTD for landlords

Making Tax Digital changes how landlords report rental income to HMRC. Here’s who’s affected, when, and what you’ll need to do.

Updated July 2026 · A general guide, not personal tax advice.

Are landlords affected by Making Tax Digital?

Yes — Making Tax Digital for Income Tax (MTD for ITSA) applies to landlords, phased in by income. From 6 April 2026 it applies if your combined gross self-employment and property income is over £50,000; from April 2027 over £30,000; and from April 2028 over £20,000. Below those thresholds you continue with normal Self Assessment for now. See the full Making Tax Digital overview.

What changes for you

Instead of one Self Assessment return each January, you’ll keep digital records of rent and expenses and send HMRC four quarterly updates a year, then a Final Declaration to finalise the year. There must be a digital link from your records to the figures — no re-typing into a portal.

The residential finance-cost rule (important)

For residential property, mortgage interest and other finance costs are not deducted from your rental profit. Instead you get a basic-rate (20%) tax credit on them. Getting this wrong is one of the most common landlord errors — it can change your tax bill significantly, especially for higher-rate taxpayers. (Commercial property finance costs are treated differently and can be deducted.)

What counts as an allowable expense?

• Letting agent and management fees
• Repairs and maintenance (not improvements)
• Buildings and contents insurance
• Ground rent, service charges and council tax you pay
• Accountant/software costs and other running expenses

How FTrak helps landlords

FTrak tracks rent and expenses per property, applies the residential finance-cost credit automatically, produces your SA105-shaped figures, and files your property income to HMRC under MTD. If property (and/or self-employment) is your only income, you can do the whole cycle without an accountant. See FTrak for landlords.