Rental income counts, even if it is your only income.
Property income is qualifying income for MTD. One flat over the threshold puts you in scope, and the test is on the rent you receive before a single expense or mortgage payment comes off it.
The test is the rent you receive before expenses and before finance costs. A portfolio that makes very little profit can comfortably be in scope.
Income and expenses are tracked property by property, which is also the only way to see which one is actually losing money.
Property inside a limited company is outside MTD for Income Tax; it sits in the company's own accounting and corporation tax. Plenty of landlords hold some each way.
You count your own share of the rent. A property owned equally with a sibling bringing in £50,000 adds £25,000 to each of your qualifying income figures. If you are told your share only after expenses have come off, HMRC assesses that figure instead.
When it applies to you
- April 2026Over £50,000In force now
Sole traders and landlords in this first wave.
- April 2027Over £30,000
The threshold falls, bringing in a substantially larger group.
- April 2028Over £20,000
Most sole traders and landlords of any size are now in scope.
Checked against HMRC guidance on 2 September 2026. Re-verify at each Budget.
Questions
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This is general information and tools for you to use. For advice on your own position, speak to a qualified adviser.