Landlords
MTD for landlords
If you receive rental income from UK or overseas property, Making Tax Digital will soon require you to report that income to HMRC quarterly. Here's everything you need to know.
Does MTD apply to landlords?
Yes. MTD ITSA applies to any individual who receives income from UK or foreign property. The threshold is based on your total qualifying income — which includes both self-employment income and rental income combined.
Example
You earn £20,000 from part-time self-employment and £35,000 from renting out two properties. Your total qualifying income is £55,000 — which puts you in scope for the April 2026 mandatory start.
MTD rollout for landlords
What landlords must report quarterly
Under MTD, landlords report their property income and expenses each quarter using HMRC's property income categories:
UK property income
- Rent received
- Premiums of lease grant
- Reverse premiums
- Other income
- Rent-a-Room receipts
Allowable expenses
- Premises running costs
- Repairs & maintenance
- Finance costs (mortgage interest)
- Professional fees
- Cost of services
- Travel costs
- Other allowable expenses
Furnished Holiday Lets (FHL) — abolished from April 2025
The special Furnished Holiday Letting (FHL) tax regime was abolished from 6 April 2025. FHL income is now reported as standard UK property income through the SA105 form category. If you were previously reporting under FHL rules, you should now use the standard UK property income categories.
Foreign property landlords
If you own property outside the UK and are a UK resident, your overseas rental income also falls under MTD ITSA. Foreign property income is reported separately under the SA106 income source category, with its own quarterly updates.
Foreign tax paid or deducted at source can be reported alongside the foreign rental income figures and claimed against UK tax liability via Foreign Tax Credit Relief.
Joint ownership — who files what?
If you own a rental property jointly, each owner files their own MTD return for their share of the income and expenses.
Example: 50/50 ownership
Property earns £24,000 rent and has £6,000 expenses. Each owner reports £12,000 income and £3,000 expenses (their 50% share) in their own MTD quarterly update.
Year-end for landlords
After the four quarterly updates, landlords complete a year-end process that includes:
- Adjustments and allowances (capital allowances, prepayments, accruals)
- Loss relief — carried forward losses from prior years
- Final Declaration — confirming all income including non-property sources
The Final Declaration deadline is 31 January following the end of the tax year.
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