Making Tax Digital (MTD) for Landlords 
Making Tax Digital (MTD) is a government initiative designed to modernise and streamline the way individuals record and report their income to HMRC. First announced in 2015, the programme aims to reduce errors, improve transparency, and move to a fully digital tax system. The initial phase, MTD for VAT, became mandatory for all VAT registered businesses in 2022, marking a major shift in how financial information is submitted.
The next stage of the programme, MTD for Income Tax for Self-Assessment, will apply to sole traders, self-employed individuals, and landlords with rental income. This expansion is part of the government's long-term plan to create a more efficient and accurate tax administration system.
From 6 April 2026, some landlords and sole traders will be required to use MTD. Whether you fall within this requirement will depend on your total ‘qualifying income’, which includes combined gross income from all self-employment and/or property sources before expenses.
Landlords, in particular, should begin preparing now. MTD compliance will become mandatory for those who exceed the qualifying income thresholds set by HMRC. Understanding these requirements early will help ensure a smooth transition, avoid penalties, and reduce the risk of compliance issues once the new rules take effect.
Select below for key features of the scheme, including thresholds, qualifying criteria, digital reporting requirements, and steps landlords should take to comply.