Making Tax Digital for landlords
Property income is qualifying income. It is the gross rent and other property income, added to any self-employment, before expenses. A portfolio does not get a different threshold.
Key takeaways
- Gross property income counts. Mortgage interest does not reduce the test.
- Several properties are added together for the person, not tested one by one.
- The Renters' Rights Act is a separate set of rules for England.
- Software on this site is not yet hands-on tested.
Property income under MTD
Qualifying income includes property income before expenses. A landlord who receives rent and also has a day job uses the rent for this test, not the salary. Expenses, including mortgage interest, come off the profit. They do not come off the qualifying-income test described on GOV.UK.
Multiple properties are still one person’s property income. This site does not publish a separate threshold for a portfolio.
Records
GOV.UK describes digital records of property income and expenses in compatible software. This page does not invent a retention period. Follow the record-keeping guidance on GOV.UK for how long to keep records.
Where a figure sits in a particular product, rent in one box and mortgage interest in another, is something this site will describe only after the software has been used. Until then, see the software shortlist.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Use Making Tax Digital for Income Tax
- GOV.UK: Get ready for MTD, an agent toolkit
- GOV.UK: Reduction of the mandation threshold from £30,000 to £20,000 from April 2028
- GOV.UK: Find software that's compatible with Making Tax Digital for Income Tax
- GOV.UK: Repossessing your privately rented property after 1 May 2026
- GOV.UK: Renting out your property, guidance for landlords and letting agents
Reviewed by
Christopher Norton
UK Property Tax & Making Tax Digital Specialist
FCCA and Chartered Tax Adviser. Director of Norton and Sons Associates Property Tax Firm. Property tax and MTD compliance since 2005.