What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's initiative to move tax reporting online, so records and updates flow through software instead of a single annual paper return.
Digital records
Instead of keeping paper or spreadsheet-only records, you maintain income and expenses in MTD-compatible software that talks to HMRC directly.
Quarterly updates
Four times a year your software sends HMRC a summary of your rental income and costs, so your tax position stays current throughout the year.
Final declaration
At year-end you confirm your totals with one declaration - taking the place of reporting this income on a Self Assessment return.
How it works
Four steps keep you compliant and tax-ready all year round.
Keep digital records
Record rental income and allowable expenses in MTD-compatible software - spreadsheets alone are no longer enough for landlords in scope.
Send quarterly updates
Every quarter, summarise income and expenses through your software. Deadlines are set by HMRC and align with quarterly reporting periods.
Final declaration
Once a year, finalise your figures with an end-of-year declaration, replacing parts of the traditional Self Assessment for those in MTD.
Pay tax owed
You still pay Income Tax and National Insurance as today - MTD changes how you report, not how your tax bill is calculated.
When it's happening
Rollout is phased by income, so smaller landlords are not all in at once. Find your threshold below.
Landlords & sole traders with qualifying income over £50,000
MTD for Income Tax Self Assessment becomes mandatory. You must keep digital records and file quarterly updates plus a yearly final declaration through software.
Threshold lowers to £30,000 qualifying income
Landlords whose combined rental and self-employment income exceeds £30,000 join the scheme. If you are below this, you are not required to join but can opt in voluntarily.
Voluntary opt-in
Smaller landlords are exempt for now, though HMRC intends to consult on extending MTD below £30,000 in future. You can follow the rules voluntarily to stay ahead.
In scope
You are required to follow MTD for Income Tax if your combined rental and self-employment income exceeds the threshold - £50,000 from April 2026, lowering to £30,000 from April 2027.
Exempt for now
Landlords with qualifying income below £30,000 are not mandated to join. You can opt in voluntarily to get used to digital reporting ahead of any future change.
How Matriva helps
Automatic quarterly summaries
Matriva totals your verified rent payments into ready-to-send quarterly updates for HMRC.
Secure HMRC connection
Connect once via GOV.UK and submit updates directly from Matriva - no extra software needed.
Agent-authorised submissions
Grant your letting agent consent to prepare and submit on your behalf, with a full audit trail.
Export to your accountant
Download clean per-property CSV breakdowns for your accountant or accounting software.
Frequently asked questions
What counts as "qualifying income"?
It is the combined total of your rental income and any self-employment income, before deducting allowances. Your £1,000 property or trading allowance does not count towards the threshold. The figure HMRC uses is your income for the 2024-25 tax year.
Do I still file a Self Assessment return?
If you are in MTD, quarterly updates and a final declaration replace the need to report this income on a Self Assessment return. You may still need Self Assessment for other untaxed income that is not covered by MTD.
Can my agent submit for me?
Yes. In Matriva your letting agent can be authorised to prepare and submit your quarterly updates and final declaration on your behalf - but only once you grant consent, which you can withdraw at any time.
What if I have a property loss?
Losses are recorded in your digital updates and can be carried forward against future rental profits, just as they are now. MTD does not change how losses are treated.
This page is a general guide. Tax rules can change and your circumstances may differ - confirm your position with HMRC or a qualified adviser before filing.
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