Quick Summary
- From 6 April 2026, landlords and sole traders with qualifying income over £50,000 must use Making Tax Digital.
- The threshold falls to £30,000 in April 2027 and is planned to fall to £20,000 in April 2028.
- Qualifying income is gross rent plus self-employed turnover — not profit.
- Joint owners count only their own share of the rent.
- Quarterly updates are due on 7 August, 7 November, 7 February and 7 May.
Making Tax Digital (MTD) for Income Tax is the biggest change to how landlords report their income in decades. If you let property in Glasgow or anywhere in the UK, here's what you need to know for 2026/27 and beyond.
Who has to join, and when?
| Qualifying income | MTD starts | Based on your tax return for |
|---|---|---|
| Over £50,000 | 6 April 2026 | 2024/25 |
| Over £30,000 | 6 April 2027 | 2025/26 |
| Over £20,000 (planned) | 6 April 2028 | 2026/27 |
What counts as qualifying income?
Qualifying income is your total gross income from property and self-employment, before any expenses. It includes UK and overseas property rents. It doesn't include employment income, pensions, dividends or interest.
If a letting agent collects your rent, use the full rent the tenants paid — not the net amount the agent passes on. A landlord with £32,000 of rent and £14,000 of costs has qualifying income of £32,000, so they'll be in MTD from April 2027.
Jointly owned property
Each owner counts only their share of the gross rent. A married couple with a portfolio producing £80,000 of rent, split 50:50, each have £40,000 — so neither is in for April 2026, but both are in from April 2027.
What you'll need to do
- Keep digital records of rental income and expenses in MTD-compatible software (or spreadsheets linked through bridging software).
- Send quarterly updates to HMRC summarising income and expenses for each property business.
- Submit a final declaration by 31 January after the tax year, with any adjustments and other income. This replaces the normal Self-Assessment return.
Quarterly update deadlines
| Quarter | Update due |
|---|---|
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
You can choose calendar quarters (ending 30 June, 30 September, 31 December and 31 March) instead, which some landlords find simpler. Quarterly updates don't change when you pay tax — payments are still due on 31 January and 31 July.
Penalties
MTD uses a points-based system for late submissions. Each late quarterly update earns a point, and a £200 penalty is charged once you reach 4 points. Points expire after a period of good compliance. Late payment penalties and interest apply separately.
How to get ready
- Check your gross rental income on your last two tax returns
- Open a separate bank account for rental income and costs if you haven't already
- Choose MTD-compatible software — your accountant can recommend one
- Agree with your letting agent how you'll get monthly statements
- Decide whether you or your accountant will submit the quarterly updates
Read our general Making Tax Digital guide, and see our landlord accountant service — we can handle quarterly updates for you.
Frequently Asked Questions
Does Making Tax Digital apply to landlords?
Yes. From 6 April 2026, landlords with qualifying income over £50,000 must use MTD for Income Tax. The threshold falls to £30,000 from April 2027 and is planned to fall to £20,000 from April 2028.
Is the MTD threshold based on rent or profit?
On gross income. It's your total rent plus any self-employed turnover before expenses, not your profit.
How does MTD work for jointly owned property?
Each owner counts only their own share of the gross rental income when checking whether they're over the threshold.
When are MTD quarterly updates due?
On 7 August, 7 November, 7 February and 7 May for the standard quarters ending 5 July, 5 October, 5 January and 5 April.
Can my accountant submit MTD updates for me?
Yes. An authorised agent can submit quarterly updates and the final declaration on your behalf.
Let Us Handle MTD for Your Rentals
We set up MTD software, keep your property records digital and submit every quarterly update on time.
Sardar Muhammad, AAT
Sardar is the founder of LimeTree Accounting Solutions, an AAT-accredited practice in Govanhill, Glasgow. He works with sole traders, tradespeople, landlords and small limited companies across Glasgow and Clydebank.
This guide is general information based on UK and Scottish tax rules as at 13 October 2026. It is not personal advice. Rates and thresholds change, so speak to us about your own situation.