Making Tax Digital for Income Tax is already operating for the first group of landlords. For anyone still relying on an old article describing it as a future change, the immediate task is to check their own position against current HMRC guidance.
Who falls within the first phase?
HMRC says individuals registered for Self Assessment with qualifying income above £50,000 must use the system from 6 April 2026. The relevant income combines property and self-employment receipts. It is measured before expenses, rather than by the profit left after running costs.
For example, a landlord receiving £32,000 in gross rent alongside £20,000 of self-employment turnover would have £52,000 of qualifying income. Looking only at the rental business could therefore give the wrong answer. Employment earnings, pensions and dividends do not count towards this particular total, according to HMRC's qualifying-income guidance.
What changes in practice?
Those within scope need compatible software to keep digital income and expense records, provide quarterly updates and complete their tax return. The annual return and tax-payment deadline remain part of the process; quarterly reporting should not be mistaken for four separate final tax bills.
HMRC's current collection explains that, from September 2026, it began signing up people who had not registered where its records showed qualifying income above £50,000 for 2024–25. Its separate qualifying-income guidance says taxpayers must still check their position even if they have not received a letter.
A practical check for landlords
Start with the relevant tax return, then reconcile the property and self-employment figures with your accountant. Keep a note of which income streams have been included and why. A spreadsheet showing rent alone is not enough to establish eligibility where another business also generates income.
Next, agree who will maintain records, review corrections and submit information. Ask your adviser to demonstrate the software workflow using your own business structure, especially where properties are jointly owned or income sources have changed. Keep HMRC correspondence alongside that decision record.
This replaces our archived 2024 preparation article. It is general information, not an assessment of an individual's tax obligations; check exemptions and your circumstances with HMRC or a qualified tax adviser.
Sources checked 7 November 2026: https://www.gov.uk/government/collections/making-tax-digital-for-income-tax https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax