HMRC starts automatic landlord Making Tax Digital sign-ups

Landlords who have not signed up for Making Tax Digital (MTD) may soon find that HMRC has done it for them.

The tax authority is beginning automatic registration from this month, in stages, for people it believes should already be using MTD for Income Tax.

The rules have applied since 6 April to sole traders and landlords whose qualifying income from self-employment and property was more than £50,000 in the 2024–25 tax year.

HMRC says more than 570,000 customers have joined the service, with more than 436,000 sending their first quarterly update.

HMRC starts sign-ups

HMRC’s director of Making Tax Digital, Craig Ogilvie, said: “It’s fantastic to see so many sole traders and landlords successfully sending their first quarterly updates.

“This marks an important milestone in the move to a more modern tax system, with many customers telling us that the process is straightforward and works well through their chosen software.”

He added: “If you haven’t yet signed up, now is the time to do so.

“Taking action now means you stay in control, can make sure your Making Tax Digital for Income Tax details are correct from the start, and have time to choose the software that works best for you, rather than waiting for HMRC to sign you up.”

Check your MTD details

HMRC will use information from 2024–25 Self Assessment tax returns when it registers taxpayers and will contact them afterwards through its online services or by post.

New guidance published on 24 August warns that the information HMRC already holds may not include changes made since the landlord’s last tax return.

Once registered, landlords should check their property and self-employment income sources, choose compatible software, create digital records from the start of the tax year and send any overdue quarterly updates.

Anyone enrolled by HMRC who believes they do not need to use MTD should contact Self Assessment general enquiries, while exemptions are available in some circumstances, including for people who are digitally excluded.

Late updates and penalties

For most taxpayers, the first quarterly update covered 6 April to 5 July 2026, while those using calendar quarters reported from 1 April to 30 June.

The deadline was 7 August, although HMRC will not issue penalty points for late quarterly updates during the 2026–27 tax year.

Landlords must keep digital records and submit the required updates, while the Self Assessment tax return deadline remains 31 January.

From 6 April 2027, missed quarterly deadlines will attract penalty points, with a £200 fixed penalty after four points, and MTD will also extend to sole traders and landlords with qualifying income of more than £30,000.