What is MTD for Landlords? Everything You Need to Know in 2026

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a UK government programme that fundamentally changes how landlords report their income to HMRC. Instead of filing one annual Self Assessment return, you are required to submit quarterly digital updates of your income and expenses — four times per year — using HMRC-recognised software. A final End of Period Statement and Final Declaration replace the traditional January return.

Why is HMRC doing this?

MTD is HMRC's strategy to reduce the £5.5 billion tax gap caused by errors in Self Assessment. Digital record-keeping reduces mistakes, and quarterly reporting means errors are caught throughout the year. Use our free eligibility quiz to check which wave applies to you.

Who does MTD ITSA affect?

MTD ITSA applies to UK landlords whose gross income exceeds the relevant threshold. Use our free MTD eligibility quiz to check yours in 60 seconds.

What do I actually have to do?

Once MTD applies to you, you must keep digital records, submit quarterly updates, and file a Final Declaration. All of this must be done through HMRC-recognised software. See our step-by-step walkthrough for exactly how this works in LandlordSorted.

What are the penalties?

HMRC uses a points-based system for late submissions. Each missed quarterly deadline earns one penalty point. Once you reach the threshold, a £200 fixed penalty is charged. LandlordSorted sends you deadline reminders automatically.

How LandlordSorted helps

LandlordSorted handles every step of MTD. Log income and expenses using landlord-specific categories, review your quarterly totals, and submit directly to HMRC with one click. The free plan covers MTD for one property. See the complete MTD guide for a deeper reference, or check your wave now.