Making Tax Digital for Landlords: Are You in Scope?

MTD applies to you if you are registered for Self Assessment and your qualifying income – gross rent plus any self-employment turnover, before expenses – was over £30,000 in 2025 to 2026. If so, you start on 6 April 2027. Over £20,000 in 2026 to 2027 means April 2028. Limited companies are outside it.

Last updated: 2 November 2026. Applies across the UK.

MTD for Income Tax is a UK-wide HMRC rule, so this test applies wherever your properties are. Work through the four checks below, then compare your position against the worked examples.

The four-question scope check

1. Are you an individual registered for Self Assessment? MTD for Income Tax applies to sole traders and landlords in Self Assessment. Rent received by a limited company is not yours.
2. Do you have property or self-employment income? If you have neither, MTD for Income Tax does not apply.
3. What was your qualifying income? Add gross rent (your share, if jointly owned) to any self-employment turnover. Do not deduct expenses.
4. Are you exempt? Check whether an automatic exemption applies or whether you could apply as digitally excluded.

Which year counts, and when you start

HMRC looks at your Self Assessment return each year. For the April 2027 stage, that is your 2025 to 2026 return, due by 31 January 2027.

If you were over £50,000 in 2024 to 2025 and haven’t signed up, GOV.UK says you should have started in April 2026 and can still sign up now.

What counts as qualifying income

GOV.UK defines qualifying income as your total income from self-employment and property, before expenses. For landlords, that is the rent you are entitled to, not what is left after costs.

Mortgage interest, agent fees, repairs and insurance do not reduce qualifying income. They still matter for your tax bill, just not for the MTD test. See our qualifying income guide for edge cases such as trusts and annualised income.

Worked examples

All examples use figures for the 2025 to 2026 tax year and standard update periods. They are illustrations, not real cases.

Example 1: Sole landlord, one property

Priya owns a flat outright in her own name. It lets for £2,700 a month, so gross rent for the year is £32,400. Her costs come to £9,000, leaving profit of £23,400.

Her qualifying income is £32,400, because expenses are ignored. That is over £30,000, so Priya must use MTD from 6 April 2027. Her first quarterly update is due 7 August 2027.

Example 2: Joint owners

Tom and Sarah are married and own two houses jointly, sharing income equally. Total gross rent is £44,000 a year. Each has qualifying income of £22,000.

Neither is over £30,000, so neither joins in April 2027. If their 2026 to 2027 figures are similar, each is over £20,000 and both join on 6 April 2028. Joint ownership often delays MTD, but rarely avoids it altogether. Our joint property guide covers unequal shares.

Example 3: Landlord with self-employment

Dan lets one property for £18,000 a year and runs a sole-trader joinery business with turnover of £15,000. He also has a part-time PAYE job paying £20,000.

His qualifying income is £18,000 plus £15,000, which is £33,000. The PAYE salary is excluded. Dan is over £30,000, so he joins on 6 April 2027, and his quarterly updates cover both the property business and the joinery business.

Example 4: Limited company landlord – out of scope

Mark owns six properties through his limited company, which receives £70,000 of rent. He pays himself a director’s salary and dividends.

The rent is the company’s income, not Mark’s, and his salary (PAYE) and dividends are both excluded from qualifying income. Mark is outside MTD for Income Tax unless he also holds property or runs a sole trade in his own name above the threshold. See our limited company guide.

Example 5: Employed landlord below £30,000

Aisha earns £65,000 a year in employment and lets one house for £26,000. Her qualifying income is £26,000, because her salary is excluded.

She is not in scope in April 2027. If her rent stays over £20,000 in 2026 to 2027, she joins on 6 April 2028.

Who is outside MTD for Income Tax

Limited companies

Companies pay Corporation Tax and are not part of MTD for Income Tax. Only your personal property and self-employment income is tested.

Partnerships

GOV.UK says partnerships are not currently required to use MTD for Income Tax and that HMRC will set out a timeline later. Your share of partnership profit is excluded from qualifying income.

Automatic exemptions

You do not need to apply if, for example:

• your qualifying income is £20,000 or less
• you did not have a National Insurance number before the tax year started
• you are a personal representative of someone who has died
• you cannot provide information to HMRC and someone acts for you under a power of attorney or as a legally appointed deputy
• your 2024 to 2025 return included Married Couple’s Allowance, Blind Person’s Allowance or the Minister of religion pages

Some exemptions last only until April 2027, such as where your 2024 to 2025 return included averaging relief, qualifying care relief, or the residence or trusts pages. Check the GOV.UK list for your exact position.

Exemptions you apply for

You can apply if you are digitally excluded, for example because age, health or disability prevents you using a device, your religious beliefs rule out digital communications, or you have no internet access at home or your business location. HMRC considers each case individually.

HMRC does not accept, on their own, that you have filed on paper before, are unfamiliar with software, have few records or would face extra time or cost. See our exemptions guide.

Non-resident landlords

If you were not UK tax resident in the relevant year, only the UK property income and UK self-employment income on your UK return count towards qualifying income. If that is over the threshold, MTD applies.

If you are in scope: next steps

1. Confirm your figures from your 2025 to 2026 return, or from your records if you haven’t filed it yet.
2. Check you can sign up. You must be registered for Self Assessment and have filed a return in the last 2 years.
3. Decide who files: you, through HMRC-recognised software, or your accountant.
4. Start digital records for each property, with date, amount and category.
5. Learn the deadlines in our quarterly updates guide.

For the full picture, go back to our Making Tax Digital for landlords guide, or see what ORBIT does and doesn’t do on our MTD-ready software page.

If you fall out of scope later

You can opt out once your qualifying income has been below the relevant threshold for 3 consecutive tax years. HMRC checks using your fourth quarterly update for the third year, and the option only appears in your HMRC online account if you are eligible. You still file a Self Assessment return.

This guide is general information, not tax advice.