MTD Threshold Calculator for Landlords: Are You In Scope and When? (2026)
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
You’re pulled into Making Tax Digital for Income Tax based on your qualifying income — the gross (pre-expenses) total of your self-employment and property income combined. Over £50,000 means April 2026, over £30,000 April 2027, and over £20,000 April 2028. The free calculator above finds your start date.
The single biggest MTD mistake landlords make is checking the wrong number. People look at their profit and think they’re safely under the threshold — when MTD actually uses gross income before any expenses. That gap pulls thousands of landlords in earlier than they expect.
The calculator above does the check properly: enter your gross rental and any self-employment turnover, and it tells you which threshold you breach and the exact tax year MTD begins for you. This guide explains every rule behind it.
New to all this? Read how to register for MTD for Income Tax first, then check the £30,000 threshold for April 2027.
Free calculator · no sign-up
MTD Threshold & Start-Date Calculator
Enter your gross rental and self-employment income to see which threshold you breach and your exact MTD start date.
Result
- Total qualifying income
- £28,000
- You must use MTD for Income Tax
- From 6 April 2028
Uses gross qualifying-income thresholds: £50k (Apr 2026), £30k (Apr 2027), £20k (Apr 2028).
What ’qualifying income’ actually means
Qualifying income is the figure HMRC measures you against. Two rules catch people out, and the calculator above applies both.
First, it’s gross — your turnover before you take off a single expense, the mortgage, or any allowance. Second, it combines all your self-employment and property income into one total.
- Included: gross rental income and gross self-employment turnover, UK and overseas
- Excluded: employment (PAYE) income, pensions, savings interest, dividends and capital gains
- Combined: a landlord with £35k rent and £20k from a side trade has £55k qualifying income — over the £50k threshold
Because it’s gross, a landlord with £52,000 rent but only £8,000 profit after the mortgage is still in scope from April 2026. Always check turnover, not profit.
The three thresholds and start dates
MTD for Income Tax is phased in by income band. Each phase has a hard start date tied to the tax year your income crossed the line.
| Qualifying income | MTD starts | Based on your return for |
|---|---|---|
| Over £50,000 | 6 April 2026 | 2024/25 |
| Over £30,000 | 6 April 2027 | 2025/26 |
| Over £20,000 | 6 April 2028 | 2026/27 |
HMRC decides your April 2026 entry from the figures on your 2024/25 Self Assessment return — the one filed by 31 January 2026. There’s nothing to apply for; HMRC writes to tell you.
How HMRC checks — and how to check yourself
HMRC assesses your qualifying income from the previous year’s Self Assessment return. So your April 2026 status is set by what you reported for 2024/25, your April 2027 status by 2025/26, and so on. Each year is re-tested, so income that dips below a threshold can take you back out (after a buffer).
You don’t need to wait for HMRC’s letter. Use the calculator above with your latest gross figures to know now, and get your records ready before the deadline rather than after it.
Who’s exempt or out of scope
Not everyone over the threshold has to join. Some are automatically exempt, and others can apply for exemption on digital-exclusion grounds.
Landlords whose income is purely from sources outside qualifying income — for example, only PAYE and a pension — never enter MTD however high those are, because that income doesn’t count.
- Automatic exemption can apply to certain trustees, personal representatives and non-resident companies
- You can apply for exemption if it’s not practical to keep digital records (age, disability, location, religion)
- Income below the relevant threshold keeps you on normal Self Assessment for now
See whether any apply to you in MTD exemptions for landlords.
Know your MTD date before HMRC tells you
LandlordTaxAi tracks your qualifying income from your bank feed and flags your MTD start date early — so you’re ready with compliant digital records, not scrambling.
See how it worksA worked example
Daniel has two flats earning £31,000 and £9,000 rent, plus £14,000 from freelance work (2024/25 figures).
| Gross rental income | £31,000 + £9,000 = £40,000 |
| Gross self-employment turnover | £14,000 |
| Total qualifying income | £54,000 |
| Threshold breached | Over £50,000 |
| MTD start date | 6 April 2026 |
Daniel’s profit after mortgages and costs is far below £50,000 — but qualifying income is gross and combined, so he’s in the first wave.
Frequently asked questions
Is the MTD threshold based on profit or turnover?
Turnover. It’s your gross self-employment and property income combined, before any expenses, mortgage or allowances.
Does my salary count towards the threshold?
No. Employment (PAYE) income, pensions, savings interest, dividends and capital gains are all excluded from qualifying income.
Which year’s figures decide if I’m in from April 2026?
Your 2024/25 Self Assessment return — the one due by 31 January 2026. April 2027 entry is based on 2025/26, and so on.
Do I combine rental and self-employment income?
Yes. If you have both, you add the gross totals together and compare the combined figure to the threshold.
What if my income drops below the threshold later?
Each year is re-tested. Sustained income below the threshold can take you back out of MTD, though HMRC applies a buffer rather than removing you instantly.
Do I need to register, or does HMRC contact me?
HMRC identifies you from your return and writes to you. You don’t apply — but you should prepare digital records before your start date rather than waiting.
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: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax; https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords; https://www.litrg.org.uk/tax-nic/making-tax-digital-income-tax/who-does-making-tax-digital-apply. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.