Making Tax Digital for holiday lets
Making Tax Digital (MTD) for Income Tax means keeping digital records and sending quarterly updates through compatible software if your qualifying income is over HMRC's thresholds. Holiday-let income counts as property income. Here is who starts when, what counts, the quarterly dates, and a free qualifying-income checker.
In short: Making Tax Digital for holiday lets
From HMRC GOV.UK guidance. Not tax advice.
- Who: sole traders and landlords registered for Self Assessment with self-employment and/or property income (HMRC).
- Thresholds: over £50,000 in 2024–25 → from 6 Apr 2026; over £30,000 in 2025–26 → from 6 Apr 2027; over £20,000 in 2026–27 → from 6 Apr 2028.
- Holiday lets count: gross holiday-let turnover is property income (FHL abolished Apr 2025) and forms part of qualifying income before expenses.
- Do now: run the qualifying-income checker, confirm with HMRC's check tool, and get MTD alerts. Today (7 Nov) is the second quarterly update deadline for landlords already on MTD.
2024–25 threshold
Over £50,000 → 6 Apr 2026
You can still sign up if you have not yet.
Coming2025–26 threshold
Over £30,000 → 6 Apr 2027
Next main wave for many holiday-let hosts.
Coming2026–27 threshold
Over £20,000 → 6 Apr 2028
Lower bar the year after.
In forceToday
7 Nov quarterly update
Second update (6 Apr–5 Oct) due for landlords already on MTD; no late-update penalty points in 2026–27.
Qualifying-income checker
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Today (7 Nov 2026) is the second quarterly update deadline for landlords already using Making Tax Digital. Next start waves are 6 April 2027 (£30,000 in 2025 to 2026) and 6 April 2028 (£20,000 in 2026 to 2027). We check HMRC and GOV.UK and email you when something changes.
Next MTD and tax dates we're watching:
- 7 Nov 2026, UK: Making Tax Digital for Income Tax: second quarterly update due (6 Apr to 5 Oct) for landlords already using it; no penalty points for late updates in 2026 to 2027 (source)
- 31 Jan 2027, UK: Online Self Assessment tax return for 2025 to 2026 due by 11:59pm, and any tax owed must be paid (source)
- 6 Apr 2027, UK: Making Tax Digital for Income Tax applies if your self-employment and property income was over £30,000 in 2025 to 2026 (source)
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1. Thresholds and start dates
You need Making Tax Digital for Income Tax if you are a sole trader or landlord registered for Self Assessment, you get self-employment and/or property income, and your qualifying income is over the threshold for the relevant tax year (HMRC, updated 26 Mar 2026).
| Tax year | Qualifying income | Start using MTD | Official source |
|---|---|---|---|
| 2024 to 2025 | Over £50,000 | From 6 April 2026 (you can still sign up) | source |
| 2025 to 2026 | Over £30,000 | From 6 April 2027 | source |
| 2026 to 2027 | Over £20,000 | From 6 April 2028 | source |
- Partnerships will need MTD later; HMRC has not set that timeline yet.
- You still need a Self Assessment return for the tax year before you start MTD.
- To sign up you must be registered for Self Assessment and have submitted a tax return in the last 2 years (HMRC; sign-up guidance).
What this means for you
Use our checker for a quick estimate, then confirm with HMRC's official check tool (it also covers exemptions).
2. What counts as qualifying income
Qualifying income is total gross income from self-employment and property before expenses (turnover), not profit (HMRC, updated 11 Sep 2026).
- Holiday-let income counts as property income. The FHL regime was abolished from April 2025, so former furnished holiday lets are taxed as ordinary property income and still feed into this total. See holiday let tax after the FHL abolition.
- Joint property: count only your share (HMRC example: £50,000 income split 50/50 → £25,000 each).
- Does not count: PAYE employment, partnership profit share as an individual partner, dividends (including from your own company), State Pension, private pensions, REIT/PAIF income, qualifying care relief, and basis-period transition profits.
- Income from a source you have ceased still counts if another self-employment or property source continues. If all self-employment and property sources ceased before 6 April 2026, you do not need MTD for Income Tax.
- Property income with a short accounting period: you must annualise the figure yourself before comparing it with the threshold.
3. Quarterly update deadlines
Quarterly updates are summaries of your digital records sent by compatible software. They are not full tax returns (HMRC).
| Standard period (tax year) | Update due by |
|---|---|
| 6 Apr to 5 Jul | 7 August |
| 6 Apr to 5 Oct | 7 November |
| 6 Apr to 5 Jan | 7 February |
| 6 Apr to 5 Apr | 7 May (next year) |
If you use calendar periods (1 April to 31 March accounting), the same four deadlines apply: 7 August, 7 November, 7 February and 7 May.
- 2026 to 2027 tax year: no penalty points for late quarterly updates. You still need to send the updates before your software tax return. Penalties for late Self Assessment returns still apply.
- After 2026–27: a late quarterly update can give a penalty point; four points lead to a £200 penalty.
- 7 November 2026 is the second quarterly update deadline (period 6 April to 5 October) for landlords already using MTD.
See also the UK short-let deadlines page for Self Assessment and other host dates.
4. What hosts should do now
- Work out your qualifying income for 2024–25, 2025–26 and 2026–27 with the checker, then confirm on GOV.UK.
- If you are already in scope from 6 April 2026, send any outstanding quarterly updates through your software and note the 7 Nov / 7 Feb / 7 May deadlines.
- If you start from 6 April 2027 or 2028, choose compatible software in good time and sign up when HMRC says you can.
- Keep digital records of holiday-let income and expenses from the start of the tax year you join.
- If you think you are digitally excluded or otherwise exempt, read HMRC's exemption guidance and apply before your start date. Exempt hosts still file a Self Assessment return.
- Sign up below for alerts when MTD or holiday-let tax rules change.
UNVERIFIED We do not list named software products here. HMRC publishes a list of compatible software; check GOV.UK before buying.
Common questions
Do holiday lets count for Making Tax Digital for Income Tax?
Yes. Holiday-let income is property income. The furnished holiday lettings (FHL) tax regime ended from April 2025, so holiday-let income is treated like other property income and counts towards your qualifying income for Making Tax Digital.
What is qualifying income?
Your total gross income from self-employment and from property, before expenses (turnover). It is not your profit. Joint property income counts only as your share. PAYE employment, dividends (including from your own company), pensions, REIT/PAIF income and partnership profit share as an individual partner do not count.
When do I have to start Making Tax Digital?
If your qualifying income was over £50,000 in 2024 to 2025, you should have started from 6 April 2026 (you can still sign up). Over £30,000 in 2025 to 2026 means from 6 April 2027. Over £20,000 in 2026 to 2027 means from 6 April 2028. Partnerships have a later timeline that HMRC has not set yet.
What are the quarterly update deadlines?
For the standard tax-year periods: 6 April to 5 July due by 7 August; 6 April to 5 October due by 7 November; 6 April to 5 January due by 7 February; 6 April to 5 April due by 7 May the next year. Calendar accounting periods (1 April to 31 March) use the same four deadlines. Quarterly updates are summaries of digital records sent by software, not a full tax return.
Are there penalties for late quarterly updates?
For the 2026 to 2027 tax year there are no penalty points for late quarterly updates, but you still need to send the updates before your software tax return. Late Self Assessment return penalties still apply. After 2026 to 2027, a late quarterly update can give a penalty point; four points lead to a £200 penalty.
Do I still need a Self Assessment return?
Yes. You still need to submit a Self Assessment tax return for the tax year before you start Making Tax Digital. To sign up you must be registered for Self Assessment and have submitted a tax return in the last 2 years.
What if I am digitally excluded or think I am exempt?
Some people are exempt, for example if they are digitally excluded. Exempt people still report income and gains on a Self Assessment tax return. Check HMRC's exemption guidance on GOV.UK and apply before you need to start if you think an exemption applies.
Is this tax advice?
No. This page is general information from HMRC and GOV.UK guidance, checked on 7 November 2026. Use HMRC's official check tool and speak to an accountant or HMRC about your own figures before acting.
More detail: Holiday let tax after the FHL abolition · UK short-let deadlines · Occupancy threshold tracker · All guides.
Official sources
Show all official sources (6)
- HMRC: Find out if and when you need to use Making Tax Digital for Income Tax (updated 26 Mar 2026)
- HMRC: Work out your qualifying income for Making Tax Digital for Income Tax (updated 11 Sep 2026)
- HMRC: Send quarterly updates (Making Tax Digital for Income Tax)
- HMRC: Sign up for Making Tax Digital for Income Tax
- HMRC: Find out if you can get an exemption from Making Tax Digital for Income Tax
- HMRC: Clarification on abolition of the furnished holiday lettings tax regime
Not tax advice. General information based on the HMRC and GOV.UK sources above, checked 7 Nov 2026. Tax depends on your circumstances. Confirm with HMRC's tools and an accountant before acting. Free to cite with a link back. The UK Short-Let Rules team.
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