Making Tax Digital for holiday let owners: what changes and when

Who has to use it, and when

Whether you are in is decided by your "qualifying income": your total income from self-employment and property before expenses, taken from an earlier tax return.

• From 6 April 2026: qualifying income over £50,000 in the 2024 to 2025 tax year.
• From 6 April 2027: qualifying income over £30,000 in the 2025 to 2026 tax year.
• From 6 April 2028: qualifying income over £20,000 in the 2026 to 2027 tax year.

Since the furnished holiday lettings tax rules were abolished in April 2025, holiday let income is simply property income, so it counts towards these thresholds along with any other rental or self-employed income. If you own a property jointly, HMRC has specific rules for working out your share, so check the GOV.UK guidance.

What changes

Instead of one tax return a year, you keep digital records and send HMRC a quarterly update using software that works with Making Tax Digital. Each update is just the totals for each income and expense category. HMRC does not see your individual receipts.

The standard quarters follow the tax year, and each update is due on the 7th of the month after the quarter ends:

• 6 April to 5 July: due 7 August
• 6 July to 5 October: due 7 November
• 6 October to 5 January: due 7 February
• 6 January to 5 April: due 7 May

You can choose calendar quarters instead (1 April to 30 June and so on) if that suits your records. After the year ends you still make a final declaration, which replaces the old tax return, by 31 January.

HMRC has said it will not give penalty points for late quarterly updates during the 2026 to 2027 tax year, but you still need to send them all before your final declaration.

What to do now

1. Add up last year's gross holiday let income, plus any other rental and self-employed income, to see which year you are likely to be brought in.
2. Keep income and expenses for each property in one place, in the categories HMRC uses, from the start of the tax year.
3. Choose MTD-compatible software, or talk to your accountant about how they will file for you.
4. Put the four quarterly deadlines in your diary.

Related guides

• Business rates and council taxAvailable 140 nights and let 70 nights a year to pay business rates. Otherwise it's council tax, possibly with a premium.
• Visitor levies in Scotland and WalesEdinburgh charges 5% now, with Glasgow, Aberdeen and Cardiff following in 2027. Here is what hosts collect and file.
• Holiday let insuranceSpecialist cover with public liability. Standard home insurance usually excludes paying guests.

Official sources

• GOV.UK: check if you need to use Making Tax Digital for Income Tax
• GOV.UK: send quarterly updates

This is general information, not legal or tax advice. Rules change, so check the official sources before you act.