What is the MTD Threshold for Landlords?
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The MTD threshold is £50,000 gross property income from April 2026, dropping to £30,000 from April 2028. This is your total rental income before expenses, not your profit. If you exceed the threshold, quarterly digital reporting is mandatory.
Understanding the threshold is crucial for planning your MTD obligations. Here's exactly how it works.
What's the current MTD threshold?
The threshold is £50,000 from 6 April 2026, then reduces to £30,000 from 6 April 2028. These are the points at which Making Tax Digital becomes mandatory for landlords.
| From | Threshold | Affected landlords |
|---|---|---|
| 6 April 2026 | £50,000+ | ~780,000 |
| 6 April 2028 | £30,000+ | Additional ~900,000 |
Is it gross income or profit?
Gross income—your total rental receipts before deducting any expenses. This is important: a landlord with £60,000 rent but £30,000 expenses is above the threshold, even though profit is only £30,000.
Include:
- All rent received
- Service charges you collect
- Other property-related income
Don't deduct mortgage payments, repairs, management fees, or other costs when calculating whether you meet the threshold.
When does the threshold change?
The £30,000 threshold comes into effect from 6 April 2028. If your income is between £30,000 and £50,000, you have an extra two years before MTD becomes mandatory. Use this time to prepare.
Below £30,000, MTD remains voluntary for now. HMRC may extend it further in future, but there's no confirmed date.
What if I'm on the borderline?
If you're close to £50,000 or £30,000, you may move in and out of scope between years. HMRC will assess based on your qualifying income in the previous tax year.
If you were over the threshold last year, you must comply this year. If you were under, you don't need to comply (but can voluntarily). Income fluctuation doesn't excuse you from compliance once triggered.
Frequently asked questions
Does this include all my properties?
Yes. The threshold is based on your total property income from all sources. If you have three properties each generating £20,000, that's £60,000 total—above the threshold.
What about jointly owned properties?
You only count your share. If you own a property 50/50 with a spouse generating £40,000 rent, your share is £20,000 for threshold purposes.
Does self-employment income count?
The thresholds apply to combined gross income from self-employment and property. If you have £30,000 from property and £25,000 from self-employment, you're over £50,000 total.
Managing this yourself?
LandlordOS helps UK landlords stay compliant and organised:
- Automatic compliance reminders for Gas Safety, EICR, EPC
- Document storage with AI-powered certificate reading
- Tenancy tracking and rent management
LandlordOS tip
Don't wait to see if you're just under the threshold. If you're anywhere near £30,000-£50,000, prepare now. Setting up digital record-keeping early is easier than rushing when mandated. You can always voluntarily comply before it's required.