The first quarterly reporting deadline is 7 August 2026. Landlords affected by the new rules should check their position now, even if HMRC has not contacted them.
Making Tax Digital for Income Tax is no longer something lurking on the horizon. It arrived on 6 April 2026.
However, the message does not appear to have reached everyone.
The Low Incomes Tax Reform Group, known as LITRG, estimates that around 111,000 unrepresented taxpayers who are required to use Making Tax Digital have still not registered. These are people managing their tax affairs without the support of an accountant or professional tax adviser.
That is just over half of the 216,000 unrepresented taxpayers HMRC previously estimated would fall within the first phase of the scheme. It is important to stress that the 111,000 figure is an estimate based on HMRC statistics and reported registration rates, rather than a confirmed HMRC total.
Which landlords need to use Making Tax Digital?
From 6 April 2026, individual landlords and sole traders registered for Self Assessment generally need to use Making Tax Digital for Income Tax if their qualifying income was more than £50,000 during the 2024/25 tax year, unless they are exempt.
Qualifying income means the combined gross income received from property and self-employment. Crucially, this is income before expenses and tax, not profit.
For example, somebody receiving £32,000 in gross rental income and £20,000 from self-employment would have qualifying income of £52,000. They could therefore fall within the current rules, even though neither source exceeds £50,000 on its own.
The threshold is also set to fall over the next two years:
- From 6 April 2027, the threshold will be more than £30,000, based on qualifying income reported for 2025/26
- From 6 April 2028, it will be more than £20,000, based on qualifying income reported for 2026/27
This means substantially more landlords are likely to be brought into the system as the rollout continues.
What does Making Tax Digital actually involve?
Landlords caught by the rules must use compatible software to:
- create, maintain and correct digital records of their property income and expenses
- send quarterly updates to HMRC
- submit their annual tax return through compatible software
The quarterly updates are summaries of the digital records held within the software. They are not four additional tax returns, and landlords do not need to make detailed tax or accounting adjustments before each update is submitted.
HMRC does not provide its own Making Tax Digital software, so affected landlords will need to select a compatible third-party product or agree with their accountant or tax adviser which system will be used.
The first deadline is 7 August 2026
For landlords using the standard tax-year reporting periods, the first quarterly update covers the period from 6 April to 5 July 2026 and must be submitted by 7 August 2026.
Those who have selected calendar-quarter reporting will cover 1 April to 30 June, but the submission deadline remains 7 August.
Further quarterly deadlines will fall on:
- 7 November
- 7 February
- 7 May following the end of the tax year
Each update is cumulative, covering the period from the beginning of the tax year to the end of the relevant reporting period.
No HMRC letter? That is not a free pass
HMRC has written to many taxpayers it believes are affected. However, not receiving a letter does not mean a landlord can safely assume that the rules do not apply.
HMRC’s guidance is clear that taxpayers remain responsible for checking their own qualifying income, confirming when they need to join and making sure they are properly registered.
In other words, “nobody told me” is unlikely to be a winning tax strategy.
What about penalties?
HMRC has confirmed that penalty points will not be applied for late quarterly updates during the 2026/27 tax year. That provides some breathing space during the first year, but it should not be confused with an exemption from the rules.
The quarterly updates must still be submitted before the annual tax return can be completed. The normal penalty rules can also continue to apply to a late annual return.
Treat the first-year concession as an opportunity to get the system working properly, not as permission to ignore it.
What should landlords do now?
Start by checking the property and self-employment income shown on your 2024/25 Self Assessment return. Remember to look at gross income before expenses and to combine the relevant sources.
Then:
- Confirm whether your qualifying income exceeded £50,000.
- Check whether an exemption could apply, including where you may be digitally excluded.
- Speak to your accountant or tax adviser, where you have one.
- Choose compatible Making Tax Digital software.
- Register and make sure your digital records are complete from the beginning of the tax year.
- Prepare to submit the first quarterly update by 7 August 2026.
Some exemptions are available, but landlords should check the criteria rather than simply assuming they qualify. HMRC identifies digital exclusion as one possible reason for exemption, while other circumstances may also be considered.
The base view
At base, we are enthusiastic advocates of technology when it removes friction, improves transparency and gives people better information.
Good digital record keeping can help landlords understand their property finances more clearly and avoid the traditional January scramble involving missing invoices, mystery transactions and a carrier bag full of receipts.
But digital transformation is not just a software project.
When more than 100,000 people may still be unaware that a new legal obligation applies to them, that points to a communication and accessibility problem too. Technology should make compliance simpler and fairer, not leave people behind because they missed a letter or could not navigate the system.
Making Tax Digital is here. For affected landlords, the sensible move is to check now, get the right support and avoid turning the 7 August deadline into an unnecessary drama.
This article provides general information and should not be treated as personal tax advice. Speak to HMRC or a qualified accountant or tax adviser about your individual circumstances.
