Making Tax Digital for landlords
Does MTD apply to Rent a Room income?
Not usually. Income within the Rent a Room allowance of £7,500 does not create a filing obligation on its own, and is well below every announced threshold.
The detail
- Above the allowance you must report the income, and it counts towards the MTD threshold.
- The allowance is halved where two people share the income from the same property.
- Any other rental or self-employed income is added to whatever part of the room income is taxable.
The thresholds, for reference
- April 2026 — gross income over £50,000, first affected year 2026/27
- April 2027 — gross income over £30,000, first affected year 2027/28
- April 2028 — gross income over £20,000, first affected year 2028/29
Remember these are measured on gross income before any expenses, mortgage interest or allowances — not on profit.
Check your own position
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Or read the main landlord guide.