MTD Income Tax for Landlords: Frequently Asked Questions

As you may know, the MTD Income Tax mandate for landlords will take effect from April 2026. If you are still struggling to understand the mandate, we are here to help by answering some frequently asked questions on MTD Income Tax for landlords.

Who does HMRC consider a landlord?

HMRC will consider you a landlord if:

• You receive rental income from one or more tenants.

• You rent out part of your main home.

• You rent out a property you do not technically own.

• You've lived abroad for more than six months of the year while still receiving rental income from your UK property.

What does MTD Income Tax mean for landlords?

From April 2026, landlords with annual income over £50,000 will be required to submit quarterly updates, replacing the usual annual submissions.

How does MTD Income Tax work if I own more than one property?

If you own multiple properties and your combined rental income meets or exceeds the threshold, you will need to comply with MTD Income Tax requirements.

Does MTD Income Tax apply per property?

No. MTD applies per taxpayer, not per property. This means it covers all of your properties as well as any self‑employed income.

Does MTD Income Tax apply to my non‑UK property?

Yes. If you own property overseas, the income will be included in your overall threshold together with your UK property income.

How do I file my MTD for Income Tax return if I have multiple UK and foreign properties?

Under MTD for Income Tax, property income is reported based on property types and locations, but the final tax return remains a single submission.

UK properties:

All UK properties are treated as one UK property business. You submit:

• Quarterly updates for your UK property income

• Required end-of-year submissions for UK property income

Foreign properties:

Foreign properties are grouped by country, with each country treated as a separate foreign property business.

For example:

Properties in France: Separate quarterly updates and requires end-of-year submissions

Properties in Germany: Separate quarterly updates and required end-of-year submissions

Final tax return:

Regardless of the number of UK or foreign properties you own, and irrespective of income sources, only one Final Declaration (tax return) is submitted to HMRC for the tax year. This final declaration brings together:

• UK property income

• Foreign property income

• Any other personal income

Will I come under the MTD Income Tax mandate if I am a new landlord?

In some cases, such as when you inherit a property and become a landlord for the first time, you do not need to adhere to MTD Income Tax until you submit your first Self Assessment tax return for the rental income.

When can I register myself for Self Assessment?

You must register for Self Assessment when your rental income exceeds £2,500 per month. Check the official HMRC page to learn more about your responsibilities as a landlord.

How will I benefit from early adoption?

It doesn’t matter whether you fall under the income threshold or not; you can still opt in for early adoption and gain several benefits, such as:

• Staying aligned with tax updates and being better prepared.

• Gaining more control over your finances.

• Having enough time to adapt to digital filing and software capabilities.

• Making data‑driven decisions, such as controlling expenses, setting rents, and planning property management investments.

How does accounting software help me with MTD Income Tax for landlords?

While the digital shift might seem overwhelming, choosing accounting software can ease the burden and help you stay on top of your finances. With the right MTD‑compatible accounting software, you can:

• Maintain accurate digital records.

• Prepare and send quarterly updates directly to HMRC.

• Finalise business income and file your final declaration, all within an MTD-compliant accounting software.

How does Zoho Books help with MTD Income Tax for landlords?

Zoho Books is now MTD‑compliant for landlords—and it’s completely free. Whether your income exceeds £50,000 or not, our end‑to‑end accounting software helps you:

• Maintain digital records of your rental income and expenses.

• Generate and send quarterly updates.

• Report BSAS and individual losses (coming soon).

• File your end‑of‑year tax return (coming soon).