The Making Tax Digital landlords threshold, explained with examples
If your qualifying income was over £50,000 in 2024–25, you've had to use MTD from 6 April 2026. Over £30,000 in 2025–26 means MTD from 6 April 2027. Over £20,000 in 2026–27 means MTD from 6 April 2028 [1]. Qualifying income is your total income from self-employment and property before expenses; wages, pensions and dividends don't count, and for jointly owned property only your share counts [2].
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The Making Tax Digital landlords threshold is the level of qualifying income above which you must use MTD for Income Tax. It's £50,000 for landlords from 6 April 2026, falling to £30,000 from 6 April 2027 and £20,000 from 6 April 2028 [1]. Crucially, it's measured on gross income, before expenses, and it's based on an earlier tax year's return.
MTD thresholds and start dates for landlords
| If your qualifying income was over | In tax year | You must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Source: HMRC [1].
So the 2025–26 tax year, which ended on 5 April 2026, is the one that decides whether you join in April 2027. Your 2025–26 return is due by 31 January 2027 [3]. HMRC will check it and write to you if you're over £30,000 [1].
What counts as qualifying income
Qualifying income is your total income from self-employment and property, before expenses, also called turnover [2]. It's based on the Self Assessment return for the earlier tax year [2].
Counts:
- rent from UK property,
- self-employment turnover,
- your share of jointly owned property income [2].
Doesn't count:
- employment (PAYE) income,
- your share of profit from a partnership as an individual partner,
- dividends, including from your own company,
- the State Pension and private pensions [2].
Making Tax Digital landlords threshold: worked examples
These follow the way HMRC's guidance works [2]. They're illustrations, not advice.
Example 1: one landlord, two lets. Gross rent of £32,000 in 2025–26, no other self-employment. Qualifying income is £32,000, over £30,000, so MTD applies from 6 April 2027. Expenses don't reduce it, even if profit was only £12,000.
Example 2: landlord with a salary. Salary of £60,000 plus gross rent of £18,000 in 2025–26. The salary doesn't count. Qualifying income is £18,000, under £30,000, so not in for April 2027. Check 2026–27 against £20,000.
Example 3: rent plus self-employment. HMRC's own example: £25,000 rental income plus £27,000 self-employment income gives qualifying income of £52,000 [2].
Example 4: joint owners. A property jointly owned by siblings brings in £50,000, split equally. Each sibling's qualifying income from it is £25,000 [2]. If you only receive notice of your share after expenses, HMRC will assess that figure [2]. See our MTD for joint property owners guide.
Why gross income catches landlords out
Many landlords think in profit, because that's what they pay tax on. But the MTD test uses turnover [2]. A landlord with £35,000 of rent and £20,000 of mortgage interest, repairs and agent fees has a profit of £15,000, yet qualifying income of £35,000. That's over the April 2027 threshold.
What to do if you're near the threshold
- Use HMRC's checker. It asks about 2024–25, 2025–26 and 2026–27 [1].
- Add up your gross rent for 2025–26. Use bank statements or your rent records.
- If you're over £30,000, prepare for April 2027. Choose compatible software, then sign up [4].
- If you're between £20,000 and £30,000, plan for April 2028. Starting with digital records early makes the switch easier.
- Check exemptions. For example, if you're digitally excluded you can apply [5].
What happens once you're in
You keep digital records, send quarterly updates by 7 August, 7 November, 7 February and 7 May, and submit your return through your software by 31 January [6][4]. See MTD for landlords: how quarterly updates work.
If all your property and self-employment income stops, HMRC's guidance says you need to tell HMRC before the start of the next tax year, and you'll get a letter confirming you don't need to use MTD [2].
Keeping repair costs ready for MTD
Repairs are often a landlord's biggest variable expense. Gaffy isn't MTD software, but it keeps every repair against its property with photos, outcome and the cost you log, so the figures and invoices are in one place when you categorise expenses in your MTD software. It also gives tenants a repair link and flags gas safety, EICR and EPC expiry dates. £12 a month for up to 5 properties, first month free.
If you've ignored a letter from HMRC
HMRC says it reviews your Self Assessment return each year and writes to you if your qualifying income is over the threshold [1]. If you got a letter and haven't acted, sign up and choose software as soon as possible. If you think the letter is wrong, HMRC says to contact it [1]. If you didn't get a letter, it's still your responsibility to check [1].
Thresholds at a glance for 2026–27 planning
| You are a landlord with gross rent of | Most likely MTD start (if no other qualifying income) |
|---|---|
| Over £50,000 in 2024–25 | Already in, from 6 April 2026 |
| £30,001 to £50,000 in 2025–26 | 6 April 2027 |
| £20,001 to £30,000 in 2026–27 | 6 April 2028 |
| £20,000 or less | Not under current thresholds |
Based on HMRC's thresholds [1]. If you also have self-employment income, add it in [2].
Key takeaway
Use gross rent, not profit, and check the right tax year.
People also ask
What is the MTD threshold for landlords in 2026?
£50,000 of qualifying income in 2024–25, for MTD from 6 April 2026 [1].
What is the MTD threshold for 2027?
£30,000 of qualifying income in 2025–26, for MTD from 6 April 2027 [1].
Is the MTD threshold based on profit or turnover?
Turnover. Qualifying income is before expenses [2].
Does my salary count towards the MTD threshold?
No. Employment income doesn't count [2].
Will the MTD threshold go down to £20,000?
Yes. From 6 April 2028, based on 2026–27 income over £20,000 [1].
Try Gaffy free for a month · MTD software for landlords
FAQ
Can Gaffy tell me if I'm over the threshold?
No. Use HMRC's checker or ask your accountant.
What does Gaffy cost?
£12 a month for up to 5 properties, plus £4 a month for each additional property.
Sources
- HMRC, Find out if and when you need to use Making Tax Digital for Income Tax (ww.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)
- HMRC, Work out your qualifying income for Making Tax Digital for Income Tax (ww.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax)
- GOV.UK, Self Assessment tax returns: deadlines (ww.gov.uk/self-assessment-tax-returns/deadlines)
- HMRC, Find software that's compatible with Making Tax Digital for Income Tax (ww.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax)
- HMRC, Apply for an exemption from Making Tax Digital for Income Tax (ww.gov.uk/guidance/apply-for-an-exemption-from-making-tax-digital-for-income-tax)
- HMRC, Use Making Tax Digital for Income Tax: send quarterly updates (ww.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)