One in six landlords recorded annual rental income above the £50,000 threshold, as the second quarterly reporting deadline under Making Tax Digital for Income Tax (MTD) approaches.

Lendlord’s analysis found that 17.7% of landlords had recorded rental income above the threshold, with portfolio size a significant factor. While fewer than 3% of landlords with one to three properties crossed the £50,000 mark, more than half of those with four to 10 properties did so and almost all landlords with 11 or more properties were above the threshold.

Those with four to 10 properties accounted for 53% of all landlords in the analysis whose rental income exceeded £50,000.

The property platform explains that, based on its median monthly rent of £900, a landlord with five properties would generate £54,000 in annual rental income.

London

Greater London had the highest proportion of landlords above the threshold, at 39%, while Wales and the North East recorded the lowest shares, at about 22%.

MTD for Income Tax currently applies to those with qualifying annual income above £50,000. This includes combined gross income from property and self-employment before expenses, meaning some landlords with rental income below the threshold could also be included. The threshold will fall to £30,000 from April 2027 and £20,000 from April 2028.

Expenses

The second quarterly update - due on 7 November - covers property income and expenses from 6 April to 5 October 2026. HMRC figures show that 436,000 landlords and sole traders submitted their first update by the 7 August deadline, while 428,000 did not.

The government explains that there are a variety of HMRC-recognised software options available. Some customers use software designed specifically for sole traders and landlords, while others use more advanced accounting packages. Free software options are also available, and customers can also use spreadsheets linked to bridging software. Guidance to choose MTD compatible software is here.

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