Checked against GOV.UK on 14 August 2026
Landlords are in Making Tax Digital on the same thresholds as sole traders, measured on gross rent before expenses. The record-keeping rules have some landlord-specific detail that saves a lot of unnecessary work.
If you have one or more properties in the UK they are legally treated as one UK property business. You do not create separate digital records for each UK property. Your share of any jointly let properties forms part of that same business, and your software combines everything into one quarterly update.
If you have foreign property income you must create separate digital records for each individual foreign property you receive income from, and separate records for your share of income and expenses where a foreign property is jointly let. All your foreign properties are still legally one foreign property business, so your software combines them into one quarterly update.
Property income including rent, premiums for the grant of a lease, reverse premiums and inducements. Property expenses including rent, costs of repairs, maintenance or other services. Each record needs the amount, the date and the category.
You need to create digital records of your Rent-a-Room income, and the relief is then applied automatically, if either:
HMRC's example: a 2024 to 2025 return declaring £55,000 of UK property income with Rent-a-Room relief used means that in 2026 to 2027 you create digital records for all property income, including the Rent-a-Room income.
If you claimed the property income allowance on your last return you still need digital records of your UK property income and expenses in your quarterly updates, and you claim the allowance in the tax return at year end. You do not need digital records of property income if both apply: the income was below the property income allowance threshold, and you did not need to declare it on your previous return.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.