Yes — most higher-earning landlords do. Making Tax Digital for Income Tax (MTD ITSA) becomes mandatory from 6 April 2026 if your qualifying income is more than £50,000 a year. Instead of one Self Assessment return with the SA105 property pages, you keep digital records, send HMRC four quarterly updates, and sign off the year with a final declaration.
The rule: who must sign up
From 6 April 2026 — mandatory if your qualifying income is over £50,000.
From April 2027 — the threshold drops to £30,000.
From April 2028 — it drops again to £20,000.
Qualifying income means gross income: rents before expenses, mortgage interest or allowances.
HMRC is auto-enrolling people in stages from September 2026, so watch the post for a letter.
The test is repeated every tax year. A landlord just under £50,000 this year can be caught next year, so check your gross figure each April. You can also sign up voluntarily if you would rather start early.
What counts towards the £50,000
Qualifying income is your self-employment income plus your property income, both gross. For a landlord that means:
All rents from all UK properties, added together before any costs.
Holiday let income, which has counted as ordinary property income since the furnished holiday lettings regime ended in April 2025.
Lodger income under Rent a Room — once you are in MTD, gross receipts count.
Any self-employment income from a separate business.
Employment income under PAYE does not count, and neither do dividends, savings interest or pensions. A £60,000 salary will not pull you into MTD. A £60,000 rental portfolio will.
What actually changes
Three things replace the old annual routine:
Digital records: every property transaction logged with a date, an amount and a category.
Quarterly updates: income and expense totals sent to HMRC four times a year, by the 7th of the month after each quarter ends.
A final declaration: this replaces the Self Assessment return. For the 2026/27 tax year it is due by 31 January 2028.
HMRC accepts spreadsheets for your records. Honest small print: no spreadsheet can submit a quarterly update on its own. That takes recognised software, or a bridging tool that connects your spreadsheet to HMRC.
How landlords differ from sole traders
Landlords and sole traders use the same system, but they are not the same thing:
Property income does not make you self-employed, and it does not attract Class 4 National Insurance.
If you have both property and self-employment income, you send two quarterly updates each quarter — one per business.
The £50,000 test combines both incomes, but the reporting stays separate.