Frequently Asked Questions — MTD for Landlords & Sole Traders

Making Tax Digital is HMRC's programme to digitise the UK tax system. For landlords and sole traders, it means moving from a single annual Self Assessment return to a system of quarterly digital updates sent directly to HMRC, followed by a year-end Final Declaration. It's not about paying more tax — it's about how tax information is recorded and reported, more frequently and digitally.

April 2026 for individuals with a qualifying income over £50,000. April 2027 for those with an income over £30,000. April 2028 for those with an income over £20,000. Qualifying income means your gross rental income plus any self-employment turnover — before expenses.

MTD changes how Self Assessment works but doesn't replace it entirely. Your quarterly updates replace the year-end scramble to gather records. Final Declaration replaces the single annual return. Overall, you're providing more information more frequently — but each individual piece is smaller and easier.

Four quarterly updates per tax year (one every three months), and one Final Declaration. RentalBux manages all submission deadlines and generates each one from your records automatically.

Do I need to comply if I only have one property? ▼

MTD is triggered by gross rental income, not the number of properties. A single property generating over £50,000 per year (from April 2026) puts you in scope. RentalBux tracks your income year-round so you always know where you stand against the threshold.

How does MTD work for jointly owned properties? ▼

Each co-owner files separately based on their ownership share on the property. If you own 60% of a property, you submit quarterly updates for 60% of the income and 60% of the expenses. Your co-owner submits their 40%. RentalBux calculates the split automatically and generates separate submissions for each owner.

Do I submit separately for each property or for all of them together? ▼

You submit one quarterly update for your UK property business as a whole — covering all your UK properties combined. But your records must be kept at the property level so you can show the detail behind the summary if HMRC asks. RentalBux handles both: property-level records and combined MTD submissions.

What expenses can I deduct for landlords? ▼

Allowable expenses for UK residential landlords include repairs and maintenance (not improvements), letting agent fees, buildings insurance, ground rent and service charges (for leaseholds), accountancy fees for landlord-related work, advertising to find tenants, and mortgage interest (subject to the Section 24 restriction for individuals). RentalBux's pre-built chart of accounts covers all of these.

Yes. HMRC treats UK property income and self-employment income as separate income sources with separate quarterly update obligations. RentalBux generates both sets of submissions from one dashboard — you don't need to manage two separate systems. 

MTD is based on gross income, not hours worked. If your self-employment turnover exceeds the threshold, you must comply regardless of whether it's a full-time or part-time activity. ware.

This is one of RentalBux's core use cases. Add UK Property and Sole Trader as income sources in your profile. RentalBux tracks each separately and generates the correct quarterly update for each. One platform, one dashboard, correctly separated submissions for both income types. 

No — not on its own. Spreadsheets cannot connect to HMRC or submit quarterly updates. Some 'bridging software' tools can theoretically link a spreadsheet to HMRC, but this is a complex workaround that HMRC is moving away from. RentalBux is purpose-built for MTD and does everything a spreadsheet cannot.

Yes. RentalBux is HMRC-recognised for Making Tax Digital for Income Tax, covering UK property income, foreign property income, and self-employment income. You can verify this on HMRC's list of recognised MTD software providers at gov.uk.

RentalBux updates automatically when HMRC changes its requirements. You don't need to do anything — the platform stays compliant, and we'll communicate any significant changes via email and the in-app notification centre.

HMRC operates a points-based penalty system for late submissions. Each late submission earns one penalty point. When you accumulate enough points (four for quarterly filers), you receive a financial penalty. Points expire after 24 months of full compliance. RentalBux's deadline reminders and automated submission workflow are designed specifically to help you avoid late submissions.

Yes. Quarterly updates can be amended at any time before you submit your End of Period Statement. Go to MTD > Submission History, find the quarter, and submit amended figures. There's no penalty for amending — corrections are part of normal MTD workflow.

Keep digital records throughout the year (not just at quarter-end), submit on time using RentalBux's deadline reminders, and use HMRC-recognised software. Most landlords who follow these three steps never receive a penalty.