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Making Tax Digital for mortgages

The introduction of Making Tax Digital (MTD) means some landlords and self-employed people must keep digital records and submit quarterly tax updates. Learn more about Making Tax Digital for mortgages with this guide.

What is Making Tax Digital (MTD)?

Making Tax Digital for Income Tax is a new initiative by HMRC for landlords and sole traders to report their income and expenses digitally and more regularly. Making Tax Digital looks to modernise the tax system, launched by the UK government and led by HMRC. It aims to replace paper-based tax reporting with digital processes to reduce errors, make it easier to get tax right, and offer a clearer, real-time view of taxes.

HMRC will assess your gross income (before deducting expenses) to determine if it applies to you. They only look at the earnings you make through being self-employed and/or being a landlord.

What are the key timelines for MTD?

When Making Tax Digital applies to you depends on your earnings:

  • 6th April 2026 – if you earned over £50,000 for the 2024-25 tax year as a landlord and/or sole trader you’ll need to use Making Tax Digital from this date.
  • 6th April 2027 – if you earned over £30,000 for the 2025-26 tax year as a landlord and/or sole trader you’ll need to use Making Tax Digital from this date.
  • 6th April 2028 – if you earned over £20,000 for the 2026-27 tax year as a landlord and/or sole trader you’ll need to use Making Tax Digital from this date.

What does Making Tax Digital mean for me?

If you’re eligible, you or your accountant will need to use digital software that’s compatible with Making Tax Digital for Income Tax. The Government has produced guidance on the software you can use.

To comply with Making Tax Digital, you’ll need to:

  • Create, store, and correct digital records of your property income and expenses and/or self-employment.
  • Send summary updates to HMRC at the end of each quarter.
  • Submit your annual tax return and pay the tax due by 31 January the following year.

What if I’m self-employed and a landlord?

If you’re both self-employed and a landlord, then what matters is the amount you earn from both income streams combined. If, in the 2024/25 tax year, you earned £35,000 from sole trading and £20,000 as a landlord, you’d need to use Making Tax Digital from 6th April 2026.

What if I can’t submit my taxes through Making Tax Digital?

If you are eligible for Making Tax Digital, you will be expected to comply with the new rules. In some cases, you may qualify for exemptions.
Learn more about exemptions with GOV.UK guidance Open in new window

What if I own my properties through a limited company?

Profits made through a limited company are not part of the gross income assessed by HMRC for Making Tax Digital. Limited companies pay corporation tax on the profit they make, and this is different to income tax.

What if some of my properties are rented abroad?

HMRC will look at the gross income on your Self Assessment tax return, this will include UK and foreign property income. If you receive income from a property rented abroad, this will count towards your qualifying income for Making Tax Digital.

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MTD for mortgages: FAQs

Need some help?

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We're on hand to arrange a phone or video call with one of our qualified mortgage professionals. We can also help with any general queries about the process. 

Call us on ${dn-0800 096 9527} 

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Buy to Let? We only provide Buy to Let mortgages online for small portfolio landlords.

  • Please use our tools and guidance designed to help you complete your mortgage application online.
  • We do not provide advice on Buy to Let mortgages but if you need technical help with your online application, get in touch so we can provide support.
  • If you are not a small portfolio landlord, or you wish to apply with a mortgage professional, NatWest Buy to Let mortgages are available via mortgage brokers.
Written by: Mortgages Team
Reviewed by: Financial Promotions Approvals team
Last updated on: 31/03/2026