Making Tax Digital for landlords

Making Tax Digital (MTD) for Income Tax applies to some landlords, including those with buy-to-let properties and consent to let arrangements.

HMRC is introducing the requirements in phases, based on your total qualifying income before expenses. This includes income from property, self-employment, or both combined.

The phase dates and turnover thresholds are as follows:

• 6 April 2026 if your turnover is above £50,000
• 6 April 2027 if your turnover is above £30,000
• 6 April 2028 if your turnover is above £20,000

Making Tax Digital (MTD) for Income Tax changes how landlords record and report their income and expenses to HMRC.

Instead of completing your tax return using information you've gathered throughout the year, you'll keep digital records using compatible software on a phone, tablet or computer. The software will send quarterly updates to HMRC, giving a summary of your income and expenses during the year.

These quarterly updates are not tax returns. They can help you keep track of your tax position throughout the year and see an estimate of what you may owe.

You'll still need to submit your final tax return and pay any tax due by the usual deadlines.

To complete your quarterly updates, you'll need your quarterly interest figures. How you receive them depends on the type of mortgage you have with us. Find out how this works for you below.

For customers with an existing buy-to-let mortgage, there's no need to contact us. We'll send you a letter by post with a breakdown of your quarterly interest.

If you have a mortgage with a consent to let arrangement, and your income fits the criteria, you can contact us to request your quarterly interest figures.

You'll need to choose compatible bookkeeping or accounting software that you can use on your phone or laptop.

There are two types of software. The one that's right for you will depend on your circumstances.

This might be right for you if:

• you want a single software product that meets all MTD requirements
• you have more complex tax affairs.

Bridging software connects you to your digital records. It may be right for you if:

• you have less complex tax affairs
• you want to continue using your current accounting software that is not compatible with MTD
• you want to keep your digital records in a spreadsheet.

You can use a combination of different software, if that works better for you.

Depending on your individual requirements, there are both free and paid software options available. Some software includes additional features like built-in reminders, or phone camera receipt scanning.

Find out more about choosing the right software (opens in a new window), or how to use the software finder tool (opens in a new window) to help you find compatible software that meets your needs.

For more details gov.uk have a dedicated site for Making Tax Digital for Income Tax where you can find more detailed information.

Making Tax Digital for Income Tax (opens in a new window)