Making Tax Digital 2026:
Are You in the April Group?

Making Tax Digital for Income Tax is the biggest change to how landlords report their income in a generation, and the first wave lands in April 2026. The rules are phased by income, so the first thing every landlord needs to know is simply this: am I in this wave, a later one, or not yet affected? This guide answers that.

This is general information rather than tax advice. If you are unsure about your own position, check with your accountant or use the eligibility tool on GOV.UK.

The three phases

HMRC is bringing landlords and sole traders into Making Tax Digital for Income Tax in stages, based on qualifying income:

• From April 2026: those with qualifying income over £50,000. Around 780,000 people are in this first group.
• From April 2027: those with qualifying income over £30,000.
• From April 2028: those with qualifying income over £20,000.

What counts as "qualifying income"?

This is where many landlords misjudge their position. Qualifying income is your gross income from self-employment and property added together, before expenses. It is turnover, not profit. So a landlord with £30,000 of rent and £25,000 of self-employed income has qualifying income of £55,000 and is in the April 2026 group, even though their taxable profit is far lower. HMRC assesses this from your 2024/25 Self Assessment return and writes to those affected.

A landlord with £30,000 of rent and £25,000 of self-employed income has qualifying income of £55,000, and is in the April 2026 group.

What you will actually have to do

• Keep digital records of your property income and expenses using compatible software.
• Send quarterly updates to HMRC, four times a year, summarising income and expenses.
• Submit a final declaration after the tax year end to confirm your figures and finalise your tax, replacing the old Self Assessment return.

Note the word compatible: paper records and standalone spreadsheets no longer meet the requirement on their own. Late submissions carry penalties under a new points-based system. For a full walkthrough, see our complete MTD guide for landlords and the quarterly checklist.

What to do now if you are in the April 2026 group

• Confirm your qualifying income from your 2024/25 figures, remembering it is gross, not profit.
• Move your record-keeping into a digital system well before April, so the first quarter is not a scramble.
• Get every property's income and expenses flowing into one place, ideally linked to your bank.
• Talk to your accountant about who files the quarterly updates, you or them.

If you are close to a threshold or need help getting compliant, our MTD for landlords page and MTD checklist are good starting points.

Frequently Asked Questions

Who has to use Making Tax Digital for Income Tax from April 2026?

Landlords and sole traders with qualifying income over £50,000. Qualifying income is gross income from self-employment and property combined, before expenses. HMRC assesses this from your 2024/25 Self Assessment return and contacts those affected.

Is qualifying income the same as profit?

No. Qualifying income is turnover, your total gross income from self-employment and property before deducting any expenses. A landlord can have modest taxable profit but still exceed the £50,000 threshold once gross rent and any self-employed income are added together.

What happens if my income is under £50,000?

You are not in the first wave, but you may join later. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028, so most landlords will be brought into Making Tax Digital within a few years. It is worth getting digital records in place early.