Making Tax Digital and the 2027 tax rise
England · last checked 8 October 2026
Making Tax Digital for Income Tax started on 6 April 2026 for landlords whose combined property and self-employed income is over £50,000 a year. It's based on income before costs, not profit.
The limit falls to £30,000 from April 2027 and £20,000 from April 2028. Three homes at £1,400 a month is already over £50,000.
From 6 April 2027, tax on property income goes up 2 points, to 22%, 42% and 47%.
Do
- Keep every rent payment and expense as a digital record, with dates and receipts.
- Use HMRC-recognised software to send quarterly updates if you're over the limit.
- Talk to an accountant about the 2027 rate rise and whether a company structure suits you.
Don't
- Don't rely on a paper notebook or a shoebox of receipts.
- Don't wait for the limit to fall on you. Start digital records now.
Deadlines
- Over £50,000 income
- From 6 April 2026
- Over £30,000 income
- From 6 April 2027
- Over £20,000 income
- From 6 April 2028
If you get it wrong
Points for late updates leading to £200 penalties, plus late payment interest.
In LetSync: Record income and expenses on the Money page
Official sources
Stay on the right side of the law, without the paperwork
LetSync tracks your certificates, deposits, Right to Rent checks, rent and repair deadlines, and reminds you before anything runs out. Free for up to 5 homes.
Start freeThis guide is general information about the law in England, not legal advice. Laws and dates change, so check GOV.UK or ask a solicitor before acting on anything serious, such as asking a tenant to leave. Last checked 8 October 2026.