If you let out property, Making Tax Digital for Income Tax works the same way as for sole traders: digital records, four quarterly updates a year and a tax return by 31 January. The difference is in what counts and what you record.
Do rents count towards the threshold?
Yes. Your qualifying income is your property income before expenses, added to any self-employment turnover. So it's your gross rents, not your profit after mortgage interest, repairs and agent's fees, that's compared with the threshold.
| MTD starts on | Qualifying income over | Based on your tax return for |
|---|---|---|
| 6 April 2026 | £50,000 | 2024–25 |
| 6 April 2027 | £30,000 | 2025–26 |
| 6 April 2028 | £20,000 | 2026–27 |
Priya lets two flats for £1,300 a month each: £31,200 of rent in 2025–26. Her profit after costs is about £9,000, but her qualifying income is £31,200 (over £30,000), so MTD applies to her from 6 April 2027. Foreign property income counts too, if you're UK resident.
Jointly owned property
If you own a property jointly, your share of the income counts towards your qualifying income. Two owners splitting £40,000 of rent equally each have £20,000 from that property. HMRC has specific guidance for owners who only receive their share after expenses have been taken off.
Records for jointly let property can be simpler: you only record your share, and you can keep one income record per category for each update period. You can also leave joint property expenses out of your quarterly updates and add them before you submit your tax return. Expenses for property you own outright still go in each update.
What you record
MTD uses the same categories as the UK property page of the tax return (SA105). For 2025–26 those are:
| Box | Category |
|---|---|
| 20 | Total rents and other income from property |
| 22 | Premiums for the grant of a lease |
| 23 | Reverse premiums and inducements |
| 24 | Rent, rates, insurance and ground rents |
| 25 | Property repairs and maintenance |
| 26 | Non-residential property finance costs |
| 27 | Legal, management and other professional fees |
| 28 | Costs of services provided, including wages |
| 29 | Other allowable property expenses |
| 36 | Costs of replacing domestic items (residential lettings only) |
| 44 | Residential property finance costs |
The furnished holiday lettings boxes are no longer in use on the 2025–26 form.
Mortgage interest on homes you let
Interest and other finance costs for residential lettings go in their own category (box 44). They aren't deducted like other expenses (they give a tax credit at the basic rate instead), so your records need to keep them separate. Even under HMRC's simpler categories for income under £90,000, landlords still need to show whether an expense is a restricted finance cost.
Using a letting agent
Agent statements are a great source for your digital records. Record the full rent received and the agent's fees as a separate expense, rather than just the net amount paid to you, so your categories are right.
Getting ready
- Find your start date (above), and remember it's gross rents that count.
- Decide where your records will live: landlord software, or a spreadsheet plus bridging software.
- List each property and your share if you own it jointly.
- Get deadline reminders for 7 August, 7 November, 7 February and 7 May.
Our MTD-Ready Spreadsheet Kit has property income and expense tabs in the SA105 categories, works out each joint owner's share, and keeps finance costs separate. Or get matched with a local accountant.
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: Create digital records (Use Making Tax Digital for Income Tax)
- GOV.UK: UK property SA105
- GOV.UK: Send quarterly updates (Use Making Tax Digital for Income Tax)
- GOV.UK: Find out if you can get an exemption from Making Tax Digital for Income Tax
This guide explains HMRC's published rules without the jargon. It's information, not tax advice, and it was accurate when we checked it on 19 October 2026. For your own situation, check your HMRC online account or speak to an accountant.