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Guide

What is Making Tax Digital, and what does it mean for landlords?

Making Tax Digital is more frequent, not more complicated. Here is exactly what changes for landlords, and what stays the same.

A row of British terraced rental houses

Making Tax Digital for Income Tax (MTD for Income Tax, sometimes called MTD ITSA) changes how landlords report rental income to HMRC. In short: you keep your records digitally, send HMRC a running summary four times a year, and confirm your figures once after the tax year ends. Your tax is still worked out the same way, on the same income, with the same allowances — what changes is the rhythm.

The old way

Until now most landlords filed one Self Assessment return a year: add up the year’s rent and expenses, type the totals into a form by 31 January, done.

The new way: three things change

  • Digital records. You keep a digital record of each bit of rent you receive and each expense you pay, instead of a shoebox of receipts reconciled at year end.
  • Quarterly updates. Four times a year you send HMRC a cumulative, year-to-date summary of your income and expenses. It’s a summary, not a tax bill — you don’t pay anything at that point.
  • A final declaration. After the tax year ends you confirm everything is complete and correct. This replaces the old once-a-year return.

Does it change how much tax I pay?

No. The same income, allowances and tax rates apply, and the dates for paying tax don’t change. You’re reporting more often, not paying more.

Do you have to do this yet?

Not everyone, and not all at once — it’s phased in by income level. See the income thresholds guide to find out if and when it applies to you, and the deadlines guide for the dates to keep.

Where Quarterwise fits

Quarterwise keeps a tidy digital record of your rent and expenses through the year, then prepares and files your quarterly updates and final declaration straight to HMRC. If your records are current, each update is a couple of minutes. It’s free for a single property.

Common questions

Is Making Tax Digital compulsory?
It’s compulsory once your qualifying income passes the threshold for the current phase. Above £50,000 you’re in from 6 April 2026; the threshold drops to £30,000 in 2027 and £20,000 in 2028. Below that you can keep using normal Self Assessment for now.
Does MTD change how much tax I pay?
No. The same income, allowances and rates apply, and the payment dates are unchanged. Only the reporting changes.
Do I still do a Self Assessment return?
Once you’re in MTD, the quarterly updates plus a final declaration replace the annual Self Assessment return for that income. You confirm your figures in the final declaration by 31 January as before.

Last updated 7 June 2026. Quarterwise is software, not a tax adviser — if you’re unsure how the rules apply to you, check with HMRC or a qualified accountant.

Related guides

Do you actually have to use Making Tax Digital? The income thresholdsWhether you need MTD comes down to one number — your qualifying income — and the date it applies. Here are the thresholds and how the income is measured.Every Making Tax Digital deadline for landlordsFour quarterly updates and one final declaration. Here are all the dates, the calendar-quarter option, and how the penalty points work.Reporting property income to HMRCTo file through Making Tax Digital, HMRC needs a property business on your record. Here is how that works and how to get one if you don’t have it yet.

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