MTD Software for Company Landlords (2026)
Last updated 27 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
MTD for Income Tax does not apply to limited companies. If your rentals are held in a company, it pays Corporation Tax and files a CT600 plus accounts at Companies House — not MTD for Income Tax quarterly updates. You still need solid bookkeeping software, just chosen for company accounts and accountant fit, not for MTD ITSA recognition.
This is one of the most common points of confusion. MTD for Income Tax targets individuals — sole traders and landlords who own property personally. A company is a separate legal person taxed under a different regime, so the MTD-for-landlords rules simply don’t bite on it.
See also limited company vs personal buy-to-let and do I need MTD for rental income?
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MTD Threshold Checker (personal income)
MTD applies to personally-held property. Company rental income doesn't count towards your personal threshold.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Companies pay Corporation Tax, not MTD ITSA. This checks personal property/sole-trade income only. Estimate only.
Why companies are outside MTD for Income Tax
MTD for Income Tax replaces the annual Self Assessment process for individuals with digital records and quarterly updates. Companies never used Self Assessment for Income Tax — they pay Corporation Tax and file a CT600. So the whole MTD-for-Income-Tax framework, including the £50k/£30k/£20k thresholds, applies to people, not companies.
If all your rentals sit in a company, you have no MTD for Income Tax quarterly updates to make for that rental income — the company files Corporation Tax instead.
You still need bookkeeping software
Outside MTD doesn’t mean outside record-keeping. A company must keep proper accounting records, file annual accounts at Companies House and a Corporation Tax return with HMRC. General accounting platforms handle this well — choose on company features, payroll/dividend needs, reporting and your accountant’s preference, not on MTD ITSA recognition.
| Aspect | Personal landlord | Company landlord |
|---|---|---|
| Tax type | Income Tax (Self Assessment) | Corporation Tax |
| MTD for Income Tax | Applies above threshold | Does not apply |
| Main filings | Quarterly updates + final declaration | CT600 + Companies House accounts |
| Software choice driven by | HMRC MTD recognition | Company accounts + accountant fit |
Watch your personal position too: if you also own property personally or have sole-trade income above the threshold, that can be within MTD — separate from the company.
What about MTD for Corporation Tax?
HMRC has discussed extending MTD to Corporation Tax, but it is not in force for 2026. Keeping digital company records now is sensible future-proofing, but there’s no current MTD for Income Tax obligation on the company itself.
Own property personally too?
LandlordTaxAi handles the personal side — reading your bank statements, categorising rent and expenses per property and keeping MTD-ready records for the property you hold in your own name.
See how it worksA worked example
How three landlords stand for April 2026.
| All rentals in a limited company | No MTD ITSA; CT600 + company accounts |
| Some property personal, some in company | MTD on personal share if above threshold |
| Director with only company rentals | Personal SA may still apply for dividends/salary |
Keep the company and personal positions separate — they follow different rules.
Frequently asked questions
Does MTD for Income Tax apply to limited company landlords?
No. MTD for Income Tax applies to individuals. A company pays Corporation Tax, so it isn’t within MTD for Income Tax.
So company landlords don’t need software?
They still do — for accounting records, Companies House accounts and the CT600. It just isn’t about MTD for Income Tax.
What about MTD for Corporation Tax?
Discussed by HMRC but not in force for 2026. Keep digital records anyway, but there’s no current MTD ITSA obligation on the company.
What if I’m a director taking dividends or salary?
Your personal Self Assessment could fall within MTD if you have qualifying personal property or sole-trade income above the threshold — but company rental income doesn’t count towards that.
What software suits a company landlord?
Xero, QuickBooks, FreeAgent or Sage handle company accounts and Corporation Tax well. Choose on accountant fit and reporting, not MTD ITSA recognition.
Should I incorporate to avoid MTD?
Avoiding MTD alone is a weak reason. Incorporation has wide tax, mortgage and admin consequences — take proper advice on the whole picture.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 27 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/check-when-to-sign-up-for-making-tax-digital-for-income-tax; https://www.gov.uk/corporation-tax. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.