What is the Making Tax Digital income threshold for landlords in 2027?

The 2027 threshold is £30,000. If your rent plus any self-employed income, before expenses, was over £30,000 on your 2025-26 tax return, Making Tax Digital applies from 6 April 2027.

Making Tax Digital for Income Tax (MTD) means digital records and quarterly updates to HMRC. HMRC estimated in October 2026 that around 1,077,000 more sole traders and landlords will need to join from 6 April 2027. The rules below are from GOV.UK, checked on 16 October 2026.

The threshold, year by year

The thresholds are set in the Income Tax (Digital Obligations) Regulations 2026. Qualifying income of £20,000 or less is an automatic exemption.

Landlords close to the line

The threshold is a single figure, and £1 either side changes the answer. These cases come up most:

The first case catches many landlords, because they think of their rent in terms of profit. HMRC's figure is turnover: everything that came in before agents, repairs and mortgage interest.

Why the test year causes confusion

The test year for April 2027 is 2025-26, which ended on 5 April 2026. Its online return is due by 31 January 2027, so a landlord who files late in January will learn only weeks before 6 April 2027 that MTD applies.

GOV.UK also explains what happens if you change a return. A change made before a tax year starts can bring you in or take you out for that year. A change made after it starts can take you out, but an increase above the threshold is not counted for that year.

Exemptions that end in April 2027

Some landlords were left out of the first wave and join in this one. GOV.UK says people whose 2024-25 return included the residence pages (SA109), averaging relief, qualifying care relief or the trusts and estates pages (SA107) were automatically exempt until April 2027. Those with averaging relief or SA107 pages join from 2027-28 if their 2025-26 qualifying income is over £30,000. The 28 October 2026 Budget said people eligible for qualifying care relief (such as foster carers), non-UK resident entertainers and sportspeople, and people expected to be non-resident will stay exempt from MTD until further notice, with regulations due before April 2027. Not every SA109 filer is in that last group, since the pages also cover cases such as split-year treatment. For landlords who live abroad, only UK property and UK self-employment income counts.

A separate exemption exists if it is not reasonable for you to use software because of age, health, disability, religious belief or lack of internet access. You apply for it; preferring paper or the cost of software is not enough on its own.

What this means for you

If your 2025-26 rent and other self-employed turnover is clearly over £30,000, plan to start on 6 April 2027 and send your first update by 7 August 2027. If you are near the line, work the figure out now from your bank and agent statements rather than waiting for your return.

If you are between £20,000 and £30,000, April 2027 is not your date, but April 2028 probably will be if your rent holds up. Starting digital records early costs little and makes 2028 simple.

Steps to check your threshold

1. Add up all rent received between 6 April 2025 and 5 April 2026, before any costs.
2. Use only your share of any jointly owned property.
3. Add any self-employed turnover. Leave out wages, pensions, dividends and partnership profit.
4. If the total is over £30,000, sign up for MTD before 6 April 2027 and choose compatible software.
5. If it is £20,000 to £30,000, repeat the sum for 2026-27, which decides April 2028.
6. Use the free MTD check to confirm, and read the landlord section for next steps.

Leaving again later

Once you are in MTD, GOV.UK says you can stop after 3 tax years in a row with qualifying income at or below the threshold. A single quiet year is not enough.