MTD for Landlords – Dead Simple Has You Sorted
Own a rental property or two? From April 2026, HMRC wants you to report your income digitally — and quarterly. Here’s what that actually means, and why with the right setup it’s far simpler than it sounds.
Does MTD Apply to You?
MTD for Income Tax applies to landlords whose gross rental income — that’s your total rent received before any expenses — is over the threshold. If you have self-employment income on top, that counts towards your qualifying income too.
Quick check — add your CIS deductions back to what you actually received. That’s your qualifying income.
| Your gross rental income | MTD applies from |
| Over £50,000 | April 2026 |
| Over £30,000 | April 2027 |
| Over £20,000 | April 2028 |
So What’s Actually Changing?
Right now, most landlords do one self-assessment a year — and many leave it until January. That changes under MTD.
From April 2026, if your gross income is over £50,000, you’ll need to:
- Keep digital records of your rental income and expenses throughout the year
- Submit a quarterly update to HMRC (four times a year, not once)
- Do a final year-end declaration confirming everything
The self-assessment deadline (31 January) stays the same. The difference is you can no longer leave everything until then.
A Few Things That Make Landlords Different
Rental income isn’t like a salary or a single trading business. You might have multiple properties, each with their own income and expenses. You might jointly own properties with a partner or spouse. You might have a mix of rental income and self-employment on top.
All of it feeds into your MTD obligations — and getting it organised properly from the start makes everything else easier.
That’s where FreeAgent comes in. And why we think it’s genuinely the best MTD solution for landlords on the market.
FreeAgent Has Everything You Need to Get MTD Done
FreeAgent isn’t just HMRC-recognised for MTD — it’s been built specifically with landlords in mind. Here’s what sets it apart.
Property-level Profit & Loss See exactly how each property is performing, not just your portfolio as a whole. Income, expenses, and profitability broken down property by property — all year round, not just at year end.
Split ownership handled automatically Own properties jointly with a partner or spouse? FreeAgent handles this properly. You set the ownership split for each property once, and FreeAgent automatically allocates income and expenses between owners at the right ratio. No manual calculations, no double bookkeeping, no errors. One licence covers joint owners — unlike most competitors who require separate accounts.
Quarterly filing built in FreeAgent has a dedicated MTD filing area so you can track submission deadlines, review your quarterly figures, and submit updates to HMRC directly — all in one place.
Connected to your bank Link your business bank account and transactions pull in automatically. We categorise everything, reconcile your accounts, and keep your books clean throughout the year.
On its own FreeAgent costs £33/month. With us, it’s included free — saving you £330 a year.
What We Do for You — From £85 a Month
Happy to handle some of the bookkeeping yourself? Our Crescent Moon (£25/month) and Half Moon (£55/month) packages might be a better fit — see all MTD plans here.
Our Full Moon package gives landlords a completely hands-off service.
- ✅ Full bookkeeping handled by us — connected directly to your bank account automatically
- ✅ FreeAgent set up and managed for you (saves you £330/year — included free)
- ✅ All four quarterly MTD submissions filed on time
- ✅ Income and expenses tracked per property
- ✅ Split ownership managed correctly from the start
- ✅ Self-assessment tax return — included, no extra charge
- ✅ Year-end final declaration sorted
- ✅ Expenses reviewed so you’re not overpaying tax
You connect your bank account. We do the rest.
From £85 per month. Everything in.
The Deadlines You Need to Know
| Quarter covers | Submit by |
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
Plus your final declaration by 31 January — same as your self-assessment always was.
In the first year (2026/27) HMRC won’t issue penalty points for late quarterly updates — it’s a soft landing while everyone adjusts. From April 2027 the full penalty regime applies, with a £200 fine once you hit the points threshold. Your final year-end declaration carries penalties from day one. We make sure none of this ever applies to you.
Sound Like the Right Fit? Drop Us a Line.
We’ll aim to get back to you same day.
That link will open your email with the subject line already filled in. Just tell us a bit about your situation and we’ll take it from there.
Need More Info?
Not ready to email yet? Head back to our MTD hub for more guides, software reviews and deadline info.
👉 Visit the Making Tax Digital Hub
Yes — there’s no minimum number of properties. If your gross rental income is over the threshold, MTD applies.
Not with FreeAgent. It handles split ownership under a single licence, allocating income and expenses between owners automatically based on the ownership ratios you set. We configure this for you as part of the setup.
Yes — HMRC adds all qualifying income sources together. If the combined total exceeds the threshold, you’re in from the relevant date.
Quite a lot — letting agent fees, repairs and maintenance, insurance, mortgage interest (subject to current rules), ground rent, service charges, and professional fees including accountancy. We review your expenses as part of the service to make sure nothing’s missed.
The threshold is based on your previous tax year’s self-assessment return. Once you’re in MTD, you need to stay below threshold for three consecutive years to drop out.
No. We set FreeAgent up for you, connect it to your bank, and handle everything from there. You don’t need to learn the software — that’s our job.
Drop us an email. We’ll work it out with you — no obligation.
