Why Is Property Flagged as MTD?

Charlotte Baroukh

Tax Expert @ Pie

5 min read

Why Is Property Flagged as MTD?

If your property income is showing as MTD in the Pie Tax App, you may be wondering what this means and whether you need to do anything differently. MTD stands for Making Tax Digital for Income Tax, HMRC's new way of collecting income and expense information digitally from certain sole traders and landlords.

Property income is included within the scope of MTD for Income Tax. However, simply having property income does not automatically mean every landlord needs to use MTD immediately. Whether you need to follow the MTD rules depends on your qualifying income, which is your total gross income from self-employment and property before expenses.

MTD for Income Tax is being introduced in stages. From 6 April 2026, it applies to individuals with qualifying income above £50,000. The threshold reduces to above £30,000 from 6 April 2027, and above £20,000 from 6 April 2028.

If you are not required to submit MTD quarterly reports for the 2026/27 tax year, you can turn off the MTD submission setting in the Pie Tax App.

This means you can remove the MTD submission setting if it does not apply to your circumstances. Before switching it off, make sure you have checked whether you are actually required to use MTD for the relevant tax year.

Turn Off MTD Submissions in Pie

Follow these two steps to turn off MTD submissions in the Pie Tax App:

Open Your Pie Profile

Open the Pie Tax App and tap your avatar in the top-left corner of the screen.
This will open your profile and account settings, where you can manage your MTD submission preferences.

Turn Off MTD Submission

From your profile settings, select ‘MTD submission’.
You will see a toggle that controls your MTD submissions. If you are not required to submit MTD quarterly reports for the 2026/27 tax year, switch the toggle off.

How to File Your MTD Quarterly Update in the Pie App

If you’re required to submit quarterly MTD updates for your landlord income, you can do this through the Pie Tax App.

Follow these two simple steps:

Connect your bank account and record your income and expenses

Open the Pie Tax App and connect your bank account to automatically import your transactions.
Pie can help you keep track of your property income and allowable expenses throughout the quarter. You can also manually add transactions if needed.

Review and submit your quarterly update

Once your income and expenses are up to date, go to your MTD income source in the Pie Tax App.
Review your quarterly figures and check that your income and expenses are correct. When you’re ready, Pie will show the figures for your MTD quarterly update before you submit them to HMRC.
You can then submit your update through the app, or use Pie’s Checked & Submitted service if you’d like our team to review your figures before submitting on your behalf.

Ask for Support

If you're unsure why your property has been flagged as MTD or whether the rules apply to you, review your qualifying income and the relevant threshold first. The Pie Tax App can help you keep your property income and expenses organised, while Expert tax assistants available on the Pie app can provide additional support with your tax questions.

If you need further help, you can contact the Pie team through in-app support or WhatsApp so the team can look into your query for you.

Frequently Asked Questions

Why is my property income flagged as MTD?

Property income is within the scope of Making Tax Digital for Income Tax. However, being flagged as MTD does not necessarily mean you need to submit quarterly updates immediately. Whether MTD applies to you depends on your qualifying income and the relevant threshold for the tax year.

What is qualifying income for MTD?

Qualifying income is your gross income before expenses from self-employment and property. If you have both property and self-employment income, these sources may be combined when determining whether you are above the MTD threshold.

What are the MTD income thresholds for landlords?

MTD for Income Tax is being introduced in stages. The threshold is more than £50,000 from 6 April 2026, more than £30,000 from 6 April 2027, and more than £20,000 from 6 April 2028.

Can I use the Pie Tax App for MTD property income?

Yes. If you are required to use MTD, you can use the Pie Tax App to keep your property income and expenses organised, connect your bank account to import transactions, review your figures and submit your quarterly updates.

Can I get help if I am unsure whether MTD applies to me?

Yes. You can contact the Pie team through in-app support or WhatsApp if you are unsure why your property has been flagged as MTD or need help understanding your tax position.

Why Is Property Flagged as MTD?