From 6 April 2027, a landlord whose gross rental and self-employment income was more than £30,000 in the 2025 to 2026 tax year must keep digital records and send HMRC an update every quarter under Making Tax Digital for Income Tax. In prime London that threshold is low: a flat let at £2,500 a month reaches it on its own.
The system has been running since 6 April 2026 for those with qualifying income above £50,000, and the second quarterly deadline of its first year fell on Saturday 7 November. For landlords joining next April, the year that decides whether they are in has already ended, so now is a sensible time to check.
Who is caught, and when
HMRC's guidance sets out three stages. Landlords and sole traders with qualifying income above £50,000 in 2024 to 2025 should have started on 6 April 2026. Those above £30,000 in 2025 to 2026 start on 6 April 2027, and those above £20,000 in 2026 to 2027 start on 6 April 2028.
Qualifying income is turnover: in HMRC's words, "the amount before expenses". Mortgage interest, agent's fees and repairs do not reduce it. Rental income and any self-employment income are added together, so a consultant with modest freelance earnings and one let flat may cross the line where neither would alone.
For jointly owned property, only your own share counts. HMRC's example is a property producing £50,000 a year owned equally by two people, each of whom has £25,000 of qualifying income. Where you only learn your share after expenses have been deducted, HMRC looks at that net figure.
Overseas owners and other cases
Many prime London landlords live abroad. HMRC's guidance distinguishes between residents and non-residents. A landlord who was UK tax resident counts both UK and foreign property income towards the threshold. A landlord who was not UK resident counts only UK property income, and any self-employment income declared on a UK return.
Some people are outside the regime altogether. The NRLA lists trustees, personal representatives of someone who has died, and non-resident companies among the automatic exemptions, and HMRC can grant an exemption where digital record keeping is not practical, for example because of age, disability or location. Property held through a UK company pays corporation tax, not income tax, and is not part of this system. Partnerships will follow, but no date has been set.
How the quarterly cycle works
Each update is cumulative, covering the tax year to date, and is sent through software that works with MTD. The deadlines are fixed: 7 August, 7 November, 7 February and 7 May, with a final declaration by 31 January after the tax year ends. An update is still required for a quarter with no income or expenses, and a mistake can be put right in the next update rather than by resending an old one.
Quarterly updates are reports, not payments: the tax is still settled through the final declaration. In the first year, landlords also file their old-style Self Assessment return for the previous year, so someone joining in April 2027 will still file a 2026 to 2027 return by 31 January 2028.
There is some leniency at the start. Propertymark and Savills both report HMRC's confirmation that no penalty points will be charged for late quarterly updates during the 2026 to 2027 tax year, although the updates must still be made. HMRC has also said it will contact people who should already be using the service in stages from September 2026.
What HMRC wants from agents next
On 3 November Propertymark reported a new HMRC consultation on making letting agents report their landlords' rental income. Agents managing residential property would send HMRC rent reports monthly or quarterly, and would collect and report each landlord's tax reference, such as a National Insurance or company number. No minimum rent is proposed, and reporting already made under the Non-Resident Landlord Scheme would be excluded. The consultation closes on 20 January 2027, and nothing has yet been decided.
Taken together with the Budget on 28 October, which Propertymark summarised as bringing a further rise in tax on property income from April 2027, the direction is clear: HMRC will see more of a landlord's figures, more often.
What to do now
- Check your 2025 to 2026 figures. Add up gross rent, your share of any jointly owned property and any self-employment turnover. If the total is above £30,000, plan to start in April 2027.
- Choose the software early. Many accountants already use MTD-compatible software for clients; agree who will keep the records and who will file.
- Ask for clear statements. A monthly statement from your agent that separates rent, fees and expenses makes each quarterly update straightforward.
- Take advice on structure, not just filing. Residence, joint ownership and company ownership all change the answer. None of this is tax advice; a tax adviser should confirm your position.
Dolce Vita handles lettings and sales across the UK from Mayfair, and helps clients buy abroad through partner agencies. If you would like to know what your home should let for, Request a lettings valuation; we acknowledge the same working day and return a written valuation within 24 to 48 hours.
Chris Dawson, Co-Founder
Sources: HMRC, "Find out if and when you need to use Making Tax Digital for Income Tax" (gov.uk, updated 2026). HMRC, "Work out your qualifying income for Making Tax Digital for Income Tax" (gov.uk, updated 11 September 2026). NRLA, "Making Tax Digital: key deadlines and timelines to know", updated 30 March 2026. Propertymark, "Making Tax Digital: November deadline approaches as more landlords prepare to join", 25 September 2026. Savills, "Making Tax Digital for landlords: are you affected by the first wave?", Landlord Update, autumn 2026. Propertymark, "Agents required to step up landlord income reporting", 3 November 2026. Propertymark, Budget 2026 summary, 28 October 2026.