MTD ITSA is live. If you are a UK landlord earning over £50,000, the rules already apply to you. Here is what has changed, what you need to do, and how to avoid penalties — in plain English.
Already in scope? If your rental income (plus any self-employment income) exceeds £50,000 gross, you were mandated from April 2026. The first quarterly deadline is 5 August 2026.
Key facts at a glance
Four quarterly submissions per year to HMRC — not just one annual return
Each submission is cumulative — you report year-to-date figures, not just the latest quarter
You must use HMRC-recognised software — spreadsheets alone will not cut it
A points-based penalty system applies — miss enough deadlines and you are fined
The £30,000 threshold follows in April 2027; £20,000 in April 2028
Your questions answered
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MTD ITSA applies to individuals who are self-assessed and receive income from self-employment or property. It is the combination of these two income types — not your total income from all sources — that determines whether you are in scope.
What counts towards the threshold:
Rental income from UK property (gross, before expenses)
Self-employment income (gross turnover, before expenses)
What does NOT count towards the threshold:
Employment income (PAYE salary or wages)
Pension income
Dividends or investment income
Savings interest
So if you earn £40,000 as an employee and £20,000 in rent, MTD ITSA does not apply yet — your qualifying income is only £20,000. But if you earn £20,000 in rent and £35,000 from self-employment, your qualifying income is £55,000 and you are in scope now.
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What to do right now
Check if you're in scope. Add up your gross rental income plus any self-employment income. If it's over £50,000, you need to act now.
Sign up for MTD ITSA with HMRC. You must register before you can submit anything. Do this through your Government Gateway account, or your chosen software may guide you through the sign-up process directly. You can find a short video on how to do this here.
Choose your software. Pick a HMRC-recognised MTD ITSA tool.
Set up your property income tracking. Log each property, start recording rent received and expenses as they happen.
Submit your Q1 update by 5 August 2026. This is your first real deadline.
Plan your year-end declaration. Decide now whether you'll handle this yourself or involve a tax adviser — particularly if you have reliefs to claim or a complex property portfolio.
Calvin Woodroffe is a Chartered Accountant and founder of Pocket Tax. This article is for general information only and does not constitute personal tax advice. If you are unsure whether MTD ITSA applies to your specific circumstances, speak to a qualified tax adviser.
