Making Tax Digital (MTD ITSA): Will You Need to Join? A Clear Guide for Landlords & Property InvestorsUnderstanding Your MTD Requirements

Making Tax Digital for Income Tax (MTD ITSA) will soon become mandatory for many landlords and self-employed individuals. One of the most common questions we receive is:

“Do I need to register for MTD, and if so, when?”

This guide explains, in plain English, how HMRC decides when you must join.

How HMRC Works Out the MTD Threshold

HMRC looks only at:

• Gross Property income (e.g., rental income)

• Gross Self-employment income, if you have any

Income such as employment income, dividends, pensions, or bank interest does not count towards the MTD threshold.

Example Based on Typical 2023/24 Figures

Here is a simple example to illustrate the rules:

• Gross Rental income: £40,000

• Dividends: £40,000

• Employment income: £20,000

MTD only considers your gross rental income. Since £40,000 is below the £50,000 threshold, you would not be required to join MTD on 6 April 2026 based on these figures.

Looking Ahead: What Happens in 2024/25?

HMRC reassesses your position each year.

If your 2024/25 gross rental income exceeds £50,000

You will enter MTD on 6 April 2026, meaning you will need to submit quarterly digital updates during the 2026/27 tax year.

If your gross rental income stays below £50,000 but above £30,000

You are expected to fall within MTD when the threshold drops to £30,000 from 6 April 2027. Quarterly reporting would then begin in the 2027/28 tax year, assuming the rules remain unchanged.

Need Help Preparing for MTD?

At Sam Niranjan & Co, we specialise in helping landlords and property investors stay compliant while minimising tax and admin stress.

👉 Book a consultation today to confirm your MTD start date and get fully prepared.