From 6 April 2027, Making Tax Digital for Income Tax applies to landlords whose qualifying income was over £30,000 on their 2025 to 2026 tax return. Qualifying income is your gross rent plus any self-employment turnover, before expenses. If you are in, you keep digital records, send four quarterly updates a year and submit your tax return through software. The same day, property income moves to its own, higher Income Tax rates. That is a separate change, and it applies whether or not you are in MTD.
This guide covers what changes for landlords on that date, the deadlines for your first year, and what to do between now and April. It is for UK landlords who own property in their own name.
Who joins in April 2027
You join on 6 April 2027 if all of these apply:
- you are a landlord or sole trader registered for Self Assessment;
- your qualifying income on your 2025 to 2026 return is more than £30,000; and
- you are not exempt, and were not already required to join in April 2026.
It is rent, not profit. A landlord with £32,000 of rent and £20,000 of costs has only £12,000 of profit, but is in, because the test looks at the £32,000. Income from a job, pensions and dividends does not count. If you own a property jointly, only your share counts. Our guide to qualifying income has more examples.
Do not wait for a letter. GOV.UK says HMRC will write to people above the threshold, but if you do not get a letter it is still your responsibility to check. You can use our MTD checker or the tool on GOV.UK.
What changes on 6 April 2027
| Change | Who it affects | What it means |
|---|---|---|
| MTD threshold falls to £30,000 | Qualifying income over £30,000 on the 2025 to 2026 return | Digital records, quarterly updates and a tax return through software |
| Separate property income rates | Individual landlords in England, Wales and Northern Ireland | 24%, 44% and 49% as announced at Budget 2026, subject to Finance Bill 2026-27 |
| Section 24 tax credit | Individual landlords with a mortgage | Moves from 20% to the property basic rate |
The tax rates are explained in landlord tax rates from April 2027, with worked examples. The government's technical note says the rate changes do not affect MTD.
Your first-year dates
| What | Covers | Due |
|---|---|---|
| 2025 to 2026 tax return (the old way) | The return that decides if you are in | 31 January 2027 |
| First quarterly update | 6 April to 5 July 2027 | 7 August 2027 |
| Second quarterly update | 6 April to 5 October 2027 | 7 November 2027 |
| 2026 to 2027 tax return (the old way) | Your last year before MTD | 31 January 2028 |
| Third quarterly update | 6 April 2027 to 5 January 2028 | 7 February 2028 |
| Fourth quarterly update | 6 April 2027 to 5 April 2028 | 7 May 2028 |
| 2027 to 2028 tax return, through software | Your first MTD year | 31 January 2029 |
Each update covers the tax year so far, so a later update can correct an earlier one. The dates above use standard update periods. If your accounting period runs from 1 April to 31 March, GOV.UK says you should use calendar update periods, which you select in your software before your first update. The deadlines stay the same. See the MTD quarterly update deadlines for how this works.
No penalty points on your first four updates
At Budget 2026 the government announced that landlords joining in April 2027 will get no penalty points for late submission of their first four quarterly updates, for the 2027 to 2028 tax year. You still have to send all four before you can submit your tax return, and a late tax return or late payment is still penalised. After that, each missed deadline can earn a point, and reaching the threshold brings a financial penalty. Our MTD penalties guide explains the points system and how late payment works.
If you think you are exempt
Exemptions exist, for example if you are digitally excluded. Some are automatic and some need an application, and exempt landlords still file a Self Assessment return. As announced at Budget 2026, people eligible for qualifying care relief, non-UK resident foreign entertainers and sportspeople, and expected non-resident customers are exempt until further notice, with the law to follow before April 2027. Other temporary exemptions may still end in April 2027, so check yours if you rely on one. See MTD exemption for landlords.
What to do before April 2027
- Now: add up your 2025 to 2026 rent and any self-employment turnover, before expenses, using your share of anything jointly owned.
- By 31 January 2027: send your 2025 to 2026 tax return the normal way.
- Early 2027: choose software. The best MTD software for landlords in 2027 compares the main options, including where ours falls short.
- Before 6 April 2027: sign up for MTD for Income Tax and connect your software. You need to be registered for Self Assessment and have sent a return in the last 2 years.
- From 6 April 2027: keep digital records of your rent and expenses as you go.
- Plan for the tax rise: run your 2027 to 2028 figures at the new rates so the bill does not surprise you.
What comes next
The threshold falls again to £20,000 from 6 April 2028, based on your 2026 to 2027 return. See the £20,000 threshold. Nothing below £20,000 has been announced. Partnerships will join later, and GOV.UK says it will set out the timeline at a later date.
Where VoxaMTD fits
We make VoxaMTD. Its free plan sends MTD quarterly updates for up to two tenancies, with no card and no trial clock. The year-end final declaration is coming before April 2027, in time for the 2026 to 2027 tax year (first due 31 January 2028). It does not cover foreign property, VAT or limited companies. See our free MTD software page, or start free, no card needed.
You can read how VoxaMTD works first, and there is an iPhone app for adding records on the move. For everything else in the same Budget, see Budget 2026 for landlords.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK), read on 3 November 2026.
- Work out your qualifying income (GOV.UK), read on 3 November 2026.
- Send quarterly updates (GOV.UK), read on 3 November 2026.
- Penalties for Making Tax Digital for Income Tax (GOV.UK), read on 3 November 2026.
- Find out if you can get an exemption (GOV.UK), read on 3 November 2026.
- Sign up for Making Tax Digital for Income Tax (GOV.UK), read on 3 November 2026.
- Income Tax: changes to tax rates for property and savings income (GOV.UK), read on 3 November 2026.
- Change to tax rates for property, savings and dividend income: technical note (GOV.UK), read on 3 November 2026.
This guide is general information, not tax advice.