Your income
Gross figures before expenses. For jointly owned property count your share of the rent.
Companies and partnerships are outside Making Tax Digital for Income Tax for now.
Making Tax Digital for Income Tax replaces the annual Self Assessment return with quarterly updates from software. Whether and when it applies depends on your gross income from property and self-employment in earlier tax years. Enter yours to see your start date, deadlines and the likely cost.
Gross figures before expenses. For jointly owned property count your share of the rent.
Companies and partnerships are outside Making Tax Digital for Income Tax for now.
HMRC looks at your gross income from all UK and overseas property and any self-employment, added together, before expenses, for the tax year two years before the start date. If you own property jointly, your share of the gross rent counts. Income from employment, pensions, dividends and a limited company does not count. Once you are in, you stay in even if income falls, unless it stays below the threshold for three years. Digitally excluded taxpayers can apply for an exemption. The MTD guide covers the rules in full.
| Cost | Range a year | Notes |
|---|---|---|
| HMRC-recognised software | £0 to £240 | Free tiers exist for landlords with one or two properties; paid plans run £5 to £20 a month |
| Accountant, if you use one | £150 to £500 extra | Four updates plus the final declaration rather than one return |
| Bridging software for spreadsheets | £30 to £100 | Keeps a spreadsheet compliant if you prefer it |
| Your time | 1 to 2 hours a quarter | Bank feeds do most of the work once set up |
Yes, to individuals with gross property income (plus any self-employment turnover) over the threshold: £50,000 from 6 April 2026, £30,000 from 6 April 2027, £20,000 from 6 April 2028. Companies pay corporation tax and are not in this regime.
Gross rent before any expenses, added to any self-employment turnover. A landlord with two properties at £1,300 a month has £31,200 of gross rent and is in from April 2027 even if profit is small.
Updates for the quarters to 5 July, 5 October, 5 January and 5 April are due by 7 August, 7 November, 7 February and 7 May. The final declaration is due by 31 January after the tax year, the same date the tax is due.
You get a penalty point for each late submission; at four points a £200 penalty applies and further late submissions each cost £200 until you reset. Late payment carries interest and separate penalties.
Yes, your share of the gross rent counts towards your threshold. Joint owners can choose to report only their share of income each quarter and add expenses at the year end.
Not once you are in Making Tax Digital: the final declaration replaces it and covers other income such as employment, dividends and interest.