Making Tax Digital for landlords: the 2026/27 rules

Written for the 2026/27 tax year. Checked against GOV.UK on 6 October 2026.

Making Tax Digital for Income Tax began on 6 April 2026. This guide explains which landlords are in this tax year, how rental income is counted, and what to keep and send. It comes from Wainwrights Accountants in Bromborough, Wirral. We work with landlords and other clients across the UK.

Key figures for landlords in 2026/27

Which landlords have to use Making Tax Digital in 2026/27?

Landlords registered for Self Assessment whose qualifying income was over £50,000 in the 2024/25 tax year, unless they are exempt. GOV.UK says they should have started on 6 April 2026. The test uses the 2024/25 tax return, not this year’s rent. Landlords who have not signed up yet can still do so.

Making Tax Digital for Income Tax means keeping digital records, sending HMRC a quarterly update through software, and sending the tax return through software too.

HMRC checks each year’s tax return and writes to people who are over the threshold. GOV.UK says it is still your responsibility to check if you did not get a letter.

This article replaces our earlier article, written for 2024/25: Making Tax Digital for landlords: preparing for the changes ahead. For this year’s wider rates and dates, see our 2026/27 tax year guide.

How does rental income count towards qualifying income?

Qualifying income is your total income from self-employment and property, before expenses. It is not your profit. Rent is added to any sole trader income to get one figure. Wages, pensions, dividends and a partner’s share of partnership profit do not count. HMRC takes the figure from your tax return.

GOV.UK gives this example: £25,000 of rental income and £27,000 of self-employment income make a qualifying income of £52,000. That is over the £50,000 threshold, even though neither source is over it alone.

UK and foreign property. For someone who was UK tax resident in 2024/25, HMRC counts self-employment income and both UK and foreign property income. For someone who was not UK tax resident, UK property income counts, and so does self-employment income declared on the UK tax return. Foreign property income and self-employment income that were not declared on the UK tax return do not.

GOV.UK lists an automatic exemption for 2026/27 for people whose 2024/25 tax return included the SA109 page.

A rental property that has since been sold can still count if you have another continuing source of self-employment or property income.

How is jointly owned property counted?

Only your share counts. GOV.UK’s example is two siblings who jointly own a property that brings in £50,000 and share it equally. Each has a qualifying income of £25,000 if they have no other self-employment or property income. Each owner is tested on their own figure, not the property’s total.

If a joint owner is only told their share after expenses have been taken off, HMRC assesses that figure.

GOV.UK also sets out three simpler options for jointly let property:

• Your share only. You only need digital records for your share of the income and expenses. Your records do not have to be linked to the other owner’s.
• Less detailed records. You can keep one digital record for each category of income in an update period, and one for each category of expense in a tax year. For example, one record of £3,000 of rent for the quarter, not three of £1,000.
• Income only in the quarterly updates. You can leave the expenses for jointly let property out of the quarterly updates. They are then reported after the tax year ends and before the tax return is sent.

These options cover jointly let property only. For a property you own on your own, income and expenses both go in each quarterly update.

What records do landlords need to keep?

A digital record of each amount of property income and each property expense, made in software that works with Making Tax Digital for Income Tax. Each record needs the amount, the date and the category. Bank statements, invoices and other supporting documents still have to be kept, as they are for Self Assessment.

All your UK properties are treated as one UK property business. You do not need a separate set of records for each UK property, and the software sends one quarterly update for them all.

Foreign property works differently. You need separate digital records for each foreign property. The software then adds them together into one quarterly update for your foreign property business.

Digital records have to be kept for at least 5 years after the 31 January deadline for the tax year.

GOV.UK has a software finder that lists the products HMRC has recognised, and says HMRC does not recommend any product or provider. If you would like us to keep the records for you, see our bookkeeping service.

When are the quarterly updates due in 2026/27?

Four times a year: by 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Each update covers the tax year so far, not just the last three months. HMRC will not apply penalty points for late quarterly updates in 2026/27, but they still have to be sent.

A quarterly update is a summary of income and expense totals. It is not a tax return, and HMRC does not receive details of individual records, such as a receipt or invoice. An update is still needed for a period with no income and no expenses.

The quarterly updates must be sent before the tax return can be submitted. The 2026/27 return is due by 31 January 2028 and goes through the same kind of software. Penalty points still apply if the return is late. GOV.UK says Making Tax Digital does not change how tax is paid or when payments are due.

Which landlords are exempt?

Anyone with qualifying income of £20,000 or less is exempt automatically. Partnerships do not need to use it yet. HMRC can agree an exemption for digital exclusion, for example where age, a health condition or a disability stops someone using a computer, tablet or smartphone, or they cannot get internet access. Some other exemptions last until April 2027.

Exempt landlords still report their income in a Self Assessment tax return as normal.

HMRC decides digital exclusion case by case. GOV.UK says an application will not be accepted if the only reason is that you filed on paper before, are not used to accountancy software, have few records to make, or would face extra time or cost.

What is coming for landlords in 2027 and 2028?

The threshold falls twice. Landlords with qualifying income over £30,000 in 2025/26 join on 6 April 2027. Those with over £20,000 in 2026/27 join on 6 April 2028. After 2026/27, each missed quarterly update deadline brings a penalty point, and four points bring a £200 penalty.

Your qualifying income for this tax year, 2026/27, is what decides whether you join in April 2028.

Once you are in, GOV.UK says you can choose to opt out if your qualifying income stays below the relevant threshold for 3 tax years in a row.

Property tax rates. A GOV.UK policy paper published on 27 November 2025 says property income will have its own Income Tax rates for the 2027/28 tax year: 22% (basic), 42% (higher) and 47% (additional). It says this will apply to England, Wales and Northern Ireland, and that the Scottish Parliament and the Senedd will be given the power to set their own property rates. Rates in Scotland and Wales may therefore be different. Income Tax bands are already different if you live in Scotland.

What does Making Tax Digital support cost at Wainwrights?

Our Making Tax Digital compliance support is an add-on at £35 a month + VAT (£42 including VAT). It sits on top of our landlord accounts price, which starts from £20 a month + VAT (£24 including VAT) for a single owner with one property. Prices are indicative. Prices are subject to turnover not exceeding £150,000.

• Single owner, one property: £20 a month + VAT (£24 including VAT)
• Joint owners, one property: £25 a month + VAT (£30 including VAT)
• Each property after the first: + £5 a month + VAT (£6 including VAT)
• Making Tax Digital add-on: + £35 a month + VAT (£42 including VAT)

The landlord price covers your UK property tax return, one Self Assessment tax return (two for joint owners) and tax efficiency planning. Our team confirms the scope and your final price with you. See our landlord accounts service, our Self Assessment help and our pricing page.

What do landlords ask us about Making Tax Digital?

Is the £50,000 test based on rent or on profit?

On rent, before expenses. GOV.UK says qualifying income is the amount before expenses, also known as turnover, added to any self-employment income.

We own a rental property jointly. Do we each count the full rent?

No. Each owner counts their own share. In GOV.UK’s example, a jointly owned property with £50,000 of income, shared equally, gives each owner a qualifying income of £25,000.

Does rent from a property abroad count?

Yes, if you were UK tax resident in 2024/25. HMRC then counts both UK and foreign property income. Each foreign property needs its own digital records.

Do I need separate records for each UK property?

No. All your UK properties are treated as one UK property business, and the software sends one quarterly update for them.

Will I get a penalty if a quarterly update is late this year?

Not penalty points in 2026/27. HMRC will not apply them for late quarterly updates this tax year. After 2026/27, each missed update deadline brings a point, and four points bring a £200 penalty.

My rent is under £50,000. When would I have to start?

On 6 April 2027 if your qualifying income was over £30,000 in 2025/26, or on 6 April 2028 if it is over £20,000 in 2026/27. At £20,000 or less you are exempt automatically.

Can Wainwrights look after Making Tax Digital for me?

Yes. Our Making Tax Digital compliance support is an add-on at £35 a month + VAT (£42 including VAT). Book a free call and an accountant will go through your own figures with you.

The rules and thresholds change from one tax year to the next, and how they apply depends on your own figures. To talk yours through with an accountant in Bromborough, get a quote or book a free call.