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What is Making Tax Digital (MTD)?
Making Tax Digital (MTD) for Income Tax is HMRC's rule that sole traders and landlords above an income threshold keep digital records and send quarterly updates to HMRC using compatible software. For landlords it became mandatory from 6 April 2026 for qualifying income over £50,000.
Why it matters to landlords
The threshold falls in stages: over £30,000 from April 2027 and over £20,000 from April 2028. Once you are in, you keep records digitally through the year, send four quarterly updates and finish the year with a final declaration instead of the old paper-style return.
MTD does not change how much tax you pay or which expenses you can claim. It changes how often you report and how you keep the records behind those reports.
Example
Priya has rent of £38,000 a year from three flats and no other self-employment income. MTD does not apply to her in April 2026, but it will from April 2027 because her qualifying income is over £30,000.
MTD for landlords: what you must do →