Do I Need MTD If I'm a Landlord and a Tradesperson?

Do trade and rental income get added together?

Yes. HMRC's qualifying income for Making Tax Digital is self-employment turnover plus property income, both "the amount before expenses" ( GOV.UK: qualifying income). So rent counts in full before letting fees, repairs or mortgage costs, and trade turnover counts before materials and van costs. The combined figure is tested against £30,000 for 2025-26 (from April 2027) and £20,000 for 2026-27 (from April 2028). The MTD £30,000 threshold guide covers the general rules.

Worked example: £22k trade plus £12k rent

Priya is a plumber who also lets out a two-bed flat she owns on her own.

Looking at either source alone, Priya would think she was safe. She isn't: it's the total that counts.

Jointly owned property: only your share counts

If Priya owned the flat 50/50 with her partner, only her half of the rent, £6,000, would count. Her qualifying income would be £28,000, under £30,000, so she would not be in from April 2027. But £28,000 is well over £20,000, so on similar figures for 2026-27 she would be in from April 2028. Her partner tests their own £6,000 share plus any income of their own.

Separate quarterly updates for each income source

Once you're in, you keep digital records for each source and send a quarterly update for each: one for the trade, one for the property. Both run on the same deadlines (7 August, 7 November, 7 February and 7 May), each is a running total from 6 April, no tax is paid with them, and a quarter with nothing to report still needs an update (GOV.UK: quarterly updates).

At the year end your tax return (previously called the final declaration) brings everything together, due 31 January. See the MTD deadlines guide for the full calendar.

Exemptions

Being a landlord as well isn't one. You're exempt automatically if you have no National Insurance number, and you can apply for a digital exclusion exemption if age, health or disability, a religious objection, or where you live (no internet access) means you can't use software. Cost, or not knowing software, isn't accepted on its own (GOV.UK: exemptions).

What to do next

1. Add your 2025-26 trade turnover to your share of the rent, both before expenses. Over £30,000 means April 2027.
2. If you're under, do the same sum for 2026-27. Over £20,000 means April 2028.
3. Keep the trade and the rental separate, with their own records and ideally their own bank accounts.
4. Start digital records for your trade now. In Sleepless Tradesman the MTD records (expenses, cash and CIS income, mileage, tax set-aside and quarterly figures) are free on every plan. Your figures are ready to export for you or your accountant to submit. Sending them to HMRC directly from the app is coming once HMRC approves it.

Frequently asked questions