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Making Tax Digital terms for landlords
Making Tax Digital for Income Tax changes how landlords and sole traders report to HMRC. From 6 April 2026 it applies to people with qualifying income over £50,000, then over £30,000 from April 2027 and over £20,000 from April 2028.
The terms below cover who is in scope, what you send and when, and how software connects to HMRC. Each one links to the official GOV.UK page it was checked against.
49 terms
- Accounting period
An accounting period is the period that your books or accounts cover.
- Agent services account
An agent services account is the HMRC online account that tax agents use to act for clients.
- Amending a quarterly update
Amending a quarterly update means correcting figures you have already sent to HMRC.
- Basis period reform
Basis period reform is the change to the rules that decide which of a business's profits are taxed in which tax year.
- Bridging software
Bridging software is a tool that takes figures from a spreadsheet and sends them to HMRC in the format Making Tax Digital needs.
- Calendar update periods
Calendar update periods are an optional alternative to the standard Making Tax Digital for Income Tax quarters.
- Consolidated expenses
Consolidated expenses means reporting your property costs as one overall figure instead of splitting them across every expense category.
- Cumulative updates
Cumulative updates are quarterly updates that each cover the whole period from 6 April to the end of the update period.
- Digital exclusion (MTD exemption)
Digital exclusion means it is not reasonable for you to use compatible software to keep digital records or send quarterly updates and your tax return.
- Digital links
Digital links are the automatic or electronic transfers that connect your records when you use more than one software product.
- Digital records
Digital records are the itemised record of each income and expense transaction that Making Tax Digital requires you to keep in software or a linked spreadsheet.
- End of period statement (EOPS)
The end of period statement, or EOPS, was a planned year end step in Making Tax Digital for Income Tax.
- Final declaration
The final declaration is the year-end step in Making Tax Digital, where you confirm your total income for the tax year and finalise your tax position.
- Foreign property income
Foreign property income is rent and other income from property outside the UK.
- Government Gateway
Government Gateway is the sign in system for HMRC online services.
- HMRC app
The HMRC app is HMRC's mobile app for managing your details, taxes and benefits.
- HMRC online services account
An HMRC online services account is your sign-in for HMRC's online services.
- HMRC software finder
HMRC's software finder is an online tool on GOV.UK for finding software that works with Making Tax Digital for Income Tax.
- Income Tax Self Assessment (ITSA)
Income Tax Self Assessment, or ITSA, is the system HMRC uses to collect Income Tax from people whose tax is not fully deducted at source, such as landlords.
- Late payment penalty (MTD)
A late payment penalty is a charge for not paying Income Tax in full by the due date under the new penalty rules that come with Making Tax Digital for Income Tax.
- Late submission penalty (MTD)
A late submission penalty is the points based penalty for missing a Making Tax Digital for Income Tax deadline.
- 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.
- MTD agent authorisation
MTD agent authorisation is the permission you give an accountant or other agent to manage Making Tax Digital for Income Tax for you.
- MTD compatible software
MTD compatible software is software that can keep your digital records and send Making Tax Digital submissions to HMRC.
- MTD exemption
An MTD exemption means HMRC has agreed you do not have to follow Making Tax Digital for Income Tax.
- MTD first year
The MTD first year is your first tax year under Making Tax Digital for Income Tax.
- MTD for Income Tax (MTD ITSA)
MTD ITSA is short for Making Tax Digital for Income Tax Self Assessment.
- MTD for jointly owned property
MTD for jointly owned property is how each co-owner reports their own share of a let property under Making Tax Digital for Income Tax.
- MTD for partnerships
MTD for partnerships means the rules for partnerships under Making Tax Digital for Income Tax.
- MTD for VAT
MTD for VAT is the existing Making Tax Digital service for VAT-registered businesses, who keep VAT records and submit VAT Returns using compatible software.
- MTD income sources
MTD income sources are the separate self-employment and property businesses you report through Making Tax Digital for Income Tax.
- MTD letter from HMRC
An MTD letter from HMRC tells you that you must start using Making Tax Digital for Income Tax, or that HMRC has already signed you up.
- MTD opt-out
MTD opt-out is leaving Making Tax Digital for Income Tax after your qualifying income has fallen below the threshold.
- MTD penalty points
Under Making Tax Digital, late submissions are handled by a points system: each missed deadline adds a penalty point, and once you reach the threshold HMRC charges a financial penalty.
- MTD start dates
MTD start dates are the dates from which sole traders and landlords must keep digital records and send quarterly updates.
- MTD threshold
The MTD threshold is the level of qualifying income above which you must follow Making Tax Digital for Income Tax.
- MTD voluntary sign-up
MTD voluntary sign-up lets a sole trader or landlord join Making Tax Digital for Income Tax before they are required to.
- National Insurance number (NINO)
A National Insurance number (NINO) is your personal reference in the UK tax and benefits system, in the format of two letters, six numbers and a final letter.
- Personal tax account
A personal tax account is HMRC's online account for your own tax affairs.
- Qualifying income
Qualifying income is the figure HMRC uses to decide whether Making Tax Digital applies to you.
- Quarterly period (update period)
A quarterly period is the part of the tax year that each Making Tax Digital for Income Tax quarterly update covers.
- Quarterly update
A quarterly update is the summary of your income and expenses that you send to HMRC every three months under Making Tax Digital.
- Quarterly update categories
Quarterly update categories are the headings under which your software totals your property income and expenses before sending a quarterly update.
- Signing up for MTD for Income Tax
Signing up is the step that moves you onto Making Tax Digital for Income Tax with HMRC.
- Software authorisation
Software authorisation is giving your compatible Making Tax Digital software permission to talk to HMRC for you.
- Sole trader
A sole trader is an individual who runs their own business and is self-employed.
- Trading allowance
The trading allowance is a tax-free allowance of up to £1,000 a tax year for trading income, such as casual services or hiring out personal equipment.
- UK property business
A UK property business is how tax law treats all the property you let out in the UK.
- Unique Taxpayer Reference (UTR)
A Unique Taxpayer Reference (UTR) is a 10 digit number HMRC gives you when you register for Self Assessment.