One in six landlords above MTD threshold

More than one in six landlords have recorded annual rent income above £50,000 as the 7 November Making Tax Digital deadline approaches.

Lendlord’s analysis puts 17.7% of landlords above the income threshold for eligible individuals to comply with MTD reporting.

The findings are based on the firm’s landlord portfolio records at the end of September.

Those covered by Making Tax Digital for Income Tax face the deadline for their second quarterly update.

Landlord digital record keeping

Lendlord’s co-founder and chief executive, Aviram Shahar, said: “More than one in six landlords in our analysis recorded annual rental income above £50,000.

“With the next quarterly deadline approaching and lower thresholds bringing more landlords into scope over the next two years, digital reporting is becoming an essential part of running a property business.”

He added: “The practical challenge is keeping records organised throughout the year.

“Bringing rental income, expenses and bank transactions together makes quarterly reporting more manageable and gives landlords a clearer picture of their portfolio’s performance.”

Income thresholds to fall

Making Tax Digital for Income Tax currently applies to eligible individuals with qualifying annual income above £50,000.

From April 2027, the MTD threshold falls to £30,000.

There’s a further reduction to £20,000 in April 2028, bringing more landlords into scope.

These thresholds apply to gross income before expenses are deducted.