MTD ITSA (Making Tax Digital for Income Tax)
Quick answer
HMRC’s digital tax regime for landlords and the self-employed. From 6 April 2026 anyone whose qualifying gross property plus self-employment income tops £50,000 must keep digital records and file four quarterly updates plus a Final Declaration through HMRC-recognised software, instead of one annual Self Assessment. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028, pulling in most UK landlords.
At a glance
- Starts
- 6 April 2026 (income over £50k)
- Then
- £30k from Apr 2027, £20k from Apr 2028
- Filing
- 4 quarterly updates + 1 Final Declaration
- First deadline
- 7 August 2026 (quarter to 5 Jul)
Full guide
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Open full guideWhy MTD ITSA (Making Tax Digital for Income Tax) matters for landlords
This is the biggest change to landlord tax admin since Self Assessment began, and the trap is the word “qualifying”: it means GROSS rent plus self-employment turnover, not profit, so a landlord with £60,000 of rent but £8,000 of net profit is still in scope. HMRC confirmed a first-year soft landing — no late-submission penalties on quarterly updates in 2026/27, with the points-based regime starting 6 April 2027 — but late-payment penalties apply from April 2026 regardless. The cheapest way to cope is to keep clean, per-property digital records from day one rather than reconstructing a year of receipts every quarter.
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Official sources
LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.
Related terms
SA105 (Property Pages)
The UK Property supplementary pages of the Self Assessment tax return, where landlords report rental income and expenses. It sits alongside the main SA100 return. Under Making Tax Digital for Income Tax, landlords over the income threshold move from the annual SA105 to digital quarterly updates plus a final declaration.
Self Assessment
HMRC’s system for reporting untaxed income, including rental profit, and paying the tax due. Most landlords must register for Self Assessment and file a return by 31 January after the tax year, paying any tax by the same date. Making Tax Digital is progressively replacing the single annual return with digital quarterly updates for landlords above the income thresholds.
Mandatory Ground
A ground for possession under Schedule 2 of the Housing Act 1988 that the court must grant if proved. Examples include Ground 1 (landlord moving in), Ground 1A (sale) and Ground 8 (serious arrears). Contrast discretionary grounds, where the court decides if possession is reasonable.
MEES (Minimum Energy Efficiency Standards)
Regulations requiring rental properties in England and Wales to meet a minimum EPC rating of E. Landlords cannot grant a new tenancy or continue an existing one for an F or G property without a valid exemption. Maximum fine: £5,000 per property.
Mileage Allowance
A simplified way to claim the cost of driving for your lettings business: 45p per mile for the first 10,000 business miles in a tax year and 25p per mile after that. You claim either mileage OR the actual running costs of the vehicle, not both, and you must keep a log of business journeys (inspections, repairs, viewings).
Mortgage Interest Tax Credit (Section 24)
The 20% basic-rate tax credit that replaced full mortgage interest deduction for individual UK landlords under section 24 of the Finance (No.2) Act 2015. From 6 April 2020, finance costs (mortgage interest, loan interest, mortgage broker fees) are no longer deductible from rental profits; instead HMRC gives a tax reducer at the basic rate, capped at the lower of finance costs, property profits or adjusted total income after personal allowance. Higher- and additional-rate taxpayers are materially worse off than pre-2017; Limited Company landlords are unaffected because Ltd interest remains a fully deductible business expense.