Making Tax Digital for landlords
It is the rent coming in that counts, not the profit after the mortgage. Here is who is caught, when, and what you actually have to do.
Who is caught, and when
Making Tax Digital for Income Tax applies to landlords whose income is above the threshold. It started on 6 April 2026 for income over £50,000, drops to £30,000 from April 2027 and £20,000 from April 2028. Most landlords with more than one property will be caught by one of those dates.
Two things catch people out. The first is that it is the rent coming in that counts, not the profit left after the mortgage, the agent's fees and the repairs. The second is that property income and self-employment income are added together, so a small business and a couple of flats can cross the line when neither would on its own.
Jointly owned property
If you own a property with someone else, normally a spouse, the rent is split between you and each share counts separately. A property bringing in £30,000 owned equally is £15,000 each. That means one owner can be inside Making Tax Digital while the other is not, and it is worth checking how the property is actually held, because it changes the tax as well as the filing.
What you will actually do
- Keep digital records of rent received and costs paid, in HMRC-recognised software rather than a spreadsheet or a folder.
- Send a quarterly update to HMRC by 7 August, 7 November, 7 February and 7 May.
- Complete a final declaration by 31 January, which replaces your Self Assessment return.
You are not paying tax four times a year. The updates are summaries; the tax dates do not change.
Holiday lets, commercial property and companies
Furnished holiday lettings and commercial property are reported differently from a standard residential let, and property held in a limited company is outside Making Tax Digital for Income Tax altogether, because a company files a corporation tax return instead. If that is you, say so on the quote and we will point you the right way.
What it costs
Landlords start at £35 a month excluding VAT, which covers two properties, your digital records, the four quarterly updates and the final declaration. Each property above two is £5 a month. You can see your own number in about a minute in the quote builder.
Have it handled for a fixed monthly fee
B Keepers is the dedicated Making Tax Digital service of AIM GB LTD, accountants and bookkeepers with over 25 years behind them. We set the software up, connect your bank, keep the records straight and file every quarterly update. One fixed monthly fee, agreed before we start.
Launch offer: sign up by 31 December 2026 and your assisted bookkeeping is free until 5 April 2027, normally £7.50 a month.
Prefer to talk it through? Call 0333 121 1940 or send us a message.
Your questions, answered
Do I need Making Tax Digital for one rental property?
Only if your income is over the threshold. It is the rent you receive that counts, not the profit after your mortgage and costs, and property income is added to any self-employment income. One property over £50,000 is caught from April 2026; smaller landlords are caught as the threshold drops to £30,000 in April 2027 and £20,000 in April 2028.
Is it the rent or the profit that counts?
The rent coming in, before expenses. HMRC call it qualifying income and it is measured gross, so mortgage interest, letting agent fees and repairs do not reduce it for this test even though they still reduce your tax.
We own the flat jointly. Whose income is it?
The rent is split according to how the property is owned, and each share is tested separately. A property bringing in £30,000 owned equally is £15,000 each, so one owner can be inside Making Tax Digital while the other is not.
Does my salary count towards the threshold?
No. Employment income taxed through PAYE does not count. Only self-employment and property income do.
What are the deadlines for landlords?
Quarterly updates by 7 August, 7 November, 7 February and 7 May, then a final declaration by 31 January. Missing an update earns a penalty point, and four points means a £200 penalty.
What does a bookkeeper charge for landlord Making Tax Digital?
B Keepers charges from £35 a month excluding VAT for landlords, covering two properties, digital records, the four quarterly updates and the final declaration, with £5 a month for each additional property.