Making Tax Digital for Income Tax (MTD ITSA) has applied to landlords since 6 April 2026. If your gross rental income, plus any self-employment income, was over £50,000 on your 2024/25 tax return, you must now keep digital records and send HMRC a quarterly update for your property business. The next deadline is 7 November 2026.
Searches for "HMRC MTD landlord enforcement" are rising because many landlords are in scope and haven't started. This guide covers what compliance looks like, what HMRC does about it, and a checklist to get right before the penalties start.
Who has to comply
| From | Qualifying income over | Based on your | |---|---|---| | 6 April 2026 | £50,000 | 2024/25 tax return | | 6 April 2027 | £30,000 | 2025/26 tax return | | 6 April 2028 | £20,000 | 2026/27 tax return |
Qualifying income is your gross income (before expenses) from property and self-employment combined. Salary, pensions, dividends and savings don't count. Use our MTD ITSA readiness calculator to check.
Jointly owned property: only your share of the rent counts towards your threshold. If you and your spouse let a property for £60,000 a year 50/50, you each have £30,000.
What MTD compliance means for landlords
1. Keep digital records of rental income and expenses
Each rent receipt and each expense must be recorded in MTD-compatible software, with:
- The date
- The amount
- The category (rent received, repairs, agent fees, insurance, finance costs and so on)
HMRC doesn't require a bank feed or any link to your bank account. Typing entries into software, or importing them from a spreadsheet, is just as compliant. Paper receipts are fine as backup, but the record itself must be digital.
2. Send quarterly updates
| Quarter | Period | Deadline | |---|---|---| | 1 | 6 April – 5 July 2026 | 7 August 2026 | | 2 | 6 July – 5 October 2026 | 7 November 2026 | | 3 | 6 October 2026 – 5 January 2027 | 7 February 2027 | | 4 | 6 January – 5 April 2027 | 7 May 2027 |
Each update is a summary of income and expenses by category, not a tax return, and updates are cumulative. See MTD ITSA quarterly updates for what goes in each one.
Joint owners each send their own updates for their share. You can choose a simpler option and report just your share of gross rent each quarter, then give full expenses at the year end. If you also own property on your own, you still report that property's expenses each quarter.
3. Finish the year
After 5 April 2027 you confirm your figures, make any adjustments, and submit a final declaration by 31 January 2028. This replaces the SA105 property pages for 2026/27. Your 2025/26 return, due 31 January 2027, is still filed the old way. See the landlord tax return guide.
How HMRC enforces MTD for landlords
HMRC has said it will start gently, but enforcement is coming:
- Letters. HMRC has written to landlords it believes are in scope, based on their tax returns. No letter doesn't mean you're exempt. If your income was over the threshold, it's your responsibility to sign up.
- No penalty points for late quarterly updates in 2026/27. This easement covers the first year only. You must still send every update before your final declaration.
- Penalty points from 6 April 2027. Each missed deadline earns 1 point. At 4 points you get a £200 penalty, plus £200 for each later late submission while you're at the threshold.
- Late payment penalties and interest apply to tax paid late, as now.
- Record-keeping. HMRC can still charge penalties for failing to keep adequate records, and MTD makes it obvious when records are missing.
- Compliance checks. HMRC already matches tax returns against third-party data such as Land Registry, tenancy deposit schemes and letting platforms. Quarterly figures that don't fit that data are more likely to be checked.
Can you be exempt? Only if you're digitally excluded (for example because of age, disability, location or religious beliefs), and you must apply to HMRC. Not liking software isn't a reason.
Landlord rental income and expenses: what to record
Income
- Rent from every property, including any you collect through an agent (record the gross rent, not the net payment)
- Deposits you keep for damage or arrears
- Charges you pass on to tenants (service charges, utilities)
Expenses
- Letting agent and management fees
- Repairs and maintenance (not improvements)
- Insurance, ground rent, service charges
- Utilities and council tax you pay
- Safety certificates, licensing and the new property register fee
- Accountancy and legal fees
- Finance costs (mortgage interest), recorded separately because they get a 20% tax credit instead of a deduction
Agent statements trip landlords up. Record the gross rent and the agent's fee as two entries, not the net amount paid into your bank.
MTD compliance checklist for landlords
- Check your qualifying income on your 2024/25 return. Was it over £50,000?
- Sign up for MTD for Income Tax on GOV.UK if you're in, letter or no letter.
- Choose MTD-compatible software and connect it to HMRC.
- Record rent and expenses per property: by hand, from a spreadsheet, or from a bank feed if you want one.
- Split agent statements into gross rent and fees.
- Send Quarter 1 if you missed it. There's no point this year, but it's required.
- Send Quarter 2 by 7 November 2026.
- Joint owners: agree how you'll each report your share.
- Diary every deadline: 7 February, 7 May, then the final declaration by 31 January 2028.
MTD for landlords with AccLedger
AccLedger is HMRC-recognised, full end-to-end MTD ITSA software. It keeps rent and expenses per property (typed in, imported from Excel, or tagged from an optional bank feed), applies the Section 24 finance cost rule, and prepares each quarterly update for you to review and submit to HMRC. Then it takes you through the end of year and the final declaration.
Landlord plans start at £5 a month with unlimited properties, and you can invite your accountant at no extra cost. Start a 30-day free trial — no card needed.
Frequently asked questions
Do all landlords have to use Making Tax Digital? No. Only those with qualifying income (gross property plus self-employment income) over £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028.
Is the £50,000 threshold before or after expenses? Before. It's gross rent, not profit.
Will HMRC fine me for a late quarterly update this year? Not in 2026/27, because there are no penalty points for late quarterly updates. Points apply from 6 April 2027.
I didn't get a letter from HMRC. Am I exempt? No. If your income was over the threshold, you must sign up whether or not HMRC wrote to you.
How does MTD work for jointly owned property? Each owner keeps records and sends updates for their own share, and only their share counts towards the threshold.
Can I still use a spreadsheet? Only with software that links it digitally to HMRC. Retyping figures into a submission isn't allowed.
This article is general guidance based on HMRC rules as of October 2026 and is not tax advice. Your HMRC obligations show the exact deadlines that apply to you.