Renting out property? Here's exactly when, and what.
Same rules, same dates as sole traders — but property income has its own quirks: holiday lets, joint ownership, and letting agents who don't file your MTD updates for you. (Nearly half of everyone mandated into MTD missed their first HMRC deadline this August — letting agent or not, that's on you to track.)
What actually counts as your income
Your qualifying income is your gross rental income — before mortgage interest, agent fees, repairs, or any other expenses. If you also have self-employment income, the two are combined.
Worked example: £28,000 rental income + £25,000 sole trader turnover = £53,000 combined — over the £50,000 threshold, even though neither figure alone reaches it.
Jointly owned property: only your share counts. £60,000 rent split equally with a partner means £30,000 qualifying income each.
Furnished holiday lets: the special FHL tax regime was abolished from April 2025. Former FHL income is now treated exactly like any other property income — no separate MTD treatment.
What doesn't count: PAYE income, dividends, pensions, savings interest.
Rent-a-room income: we haven't found a definitive HMRC statement on whether it's included in the qualifying income figure or excluded below the £7,500 allowance. Worth checking directly on GOV.UK if this applies to you.
Each separate property business needs its own quarterly update — and if you also run a sole trader business, that's a further separate stream again. Records also have to move between any software you use through an automated digital link, not manual copy-paste.
Your timeline
NOW
If your 2024/25 income was over £50,000
You've been required to use MTD since 6 April 2026. Register now if you haven't.
6 APR 2027
If your 2025/26 income is over £30,000
You'll be brought in from this date.
6 APR 2028*
If your 2026/27 income is over £20,000
Expected, not yet confirmed in law.
EVERY YEAR
Once you're in, the cycle repeats
Quarterly updates due 7 Aug, 7 Nov, 7 Feb, 7 May. Final Declaration and balancing payment due 31 January.
Managing it yourself, or through a letting agent?
Keep digital records of rent received and expenses as you go
Submit four quarterly updates yourself, on the fixed dates
Reconcile and submit your Final Declaration by 31 January
Nobody else is watching these deadlines for you.
Most letting agents do not file your quarterly MTD updates for you unless specifically arranged (and likely paid for)
You'll typically still need your own MTD software, or an accountant, on top of your letting agent
Rent statements from your agent are useful records, but you still have to get them into your MTD software on time
If you assumed your agent "handles the tax side," it's worth checking that explicitly.
What happens if you miss a deadline
One point per missed deadline. 4 points = £200, then £200 for every further late submission. No points for late quarterly updates specifically during 2026/27.
Timing
What happens
Days 1–15 late
No penalty
Day 31+ late
3% of the tax owed as of day 15, plus a further 3% as of day 30
Ongoing from day 31
10% a year accruing daily on whatever remains unpaid
Full MTD support kits elsewhere run £15–£30. This is just the dates and reminders — done properly, priced accordingly.
The MTD Deadline Calendar
Every quarterly update and Final Declaration date, 2026/27 through 2028/29
Reminders built in: 3 months, 6 weeks, 2 weeks, 7 days, 3 days and on-the-day nudges before your Final Declaration; a heads-up 10 days and 1 day before each quarterly update
One .ics file — works with iPhone, Google and Outlook calendars
One-off purchase, no account, no subscription
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Landlord questions
I have a holiday let — is it treated differently?
Not any more. The Furnished Holiday Lettings regime was abolished from April 2025. Former FHL income is now ordinary property income for MTD purposes.
I co-own a property — do I count the full rent or just my share?
Just your share. Jointly owned property income is split according to ownership for the qualifying income test.
My letting agent handles everything — do I still need to do anything?
Almost certainly yes. Rent collection and MTD reporting are usually separate services.
I have property income and a sole trader business — how do I combine them?
Add the gross figures together. Both are tested against the same threshold as one combined total.
What if my rental income drops below the threshold?
You stay in MTD until your qualifying income has been below the threshold for three consecutive tax years.