HMRC writes to landlords as Making Tax Digital deadline approaches
9:32 AM, 5th February 2026, 2 months ago
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HMRC will write to thousands of landlords in the coming weeks ahead of the rollout of Making Tax Digital (MTD).
Under the controversial scheme, from April this year, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HMRC using authorised MTD-compliant software.
HMRC will contact landlords with income above the £50,000 threshold to explain how to prepare, including details of the new reporting system.
Make it easier for landlords
HMRC continue to claim MTD will be beneficial for landlords.
Craig Ogilvie, HMRC’s director of Making Tax Digital, said: “MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997.
“It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.”
The first batch of letters will be sent between 2–13 February and 16–27 March, confirming that affected taxpayers will be required to comply with Making Tax Digital from the start of the 2026–27 tax year.
The letters outline the main changes under MTD for Income Tax, including what MTD is, when taxpayers must begin using it, and the new requirement to submit quarterly updates using digital software.
No real benefit
As previously reported on Property118, many industry experts have raised scepticism over MTD.
Accountant Simon Misiewicz told Property118: “There’s no real benefit beyond maybe streamlining some of the work you already do. Does it help with tax returns and submissions? The truth is, I can’t see how.
“There’s no advantage for the individual in submitting quarterly returns, because HMRC doesn’t do anything with them until the end of the year. You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government”.
The government admitted in the MTD impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.
Tags:
HMRC Making Tax Digital April 2026 Deadline, Making tax digital, Making Tax Digital reporting, MTD for Income Tax UK Landlords, MTD software
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Member Since October 2023 - Comments: 36
9:38 AM, 5th February 2026, About 2 months ago
HMRC are doing this MTD rollout for one reason only. It’s to catch you out and fine you as much as they can. It’s another cash cow for HMRC who want to keep a Big Brother watch on you throughout your business and personal life, from watching your bank accounts and gathering information on you through the year. They are controlling and that is their real motive, ultimate control. Welcome to Britain in 2026.
Member Since August 2017 - Comments: 50
9:55 AM, 5th February 2026, About 2 months ago
Is that £50,000 income overall, or just from property?
Member Since November 2020 - Comments: 23
10:03 AM, 5th February 2026, About 2 months ago
It is important to remember that the £50,000 limit is for income from property – state pension and interest earned from savings are not included in the £50000.
HMRC wrote to me to say I had to submit my tax calculations quarterly as my overall income was over £50k, but this included my pension and interest, so they were wrong.
Member Since June 2015 - Comments: 330
10:18 AM, 5th February 2026, About 2 months ago
They have massively underestimated the cost of software for portfolio landlords. If we have to do MTD we may as well use software that does other useful stuff.
I’m currently using both Hammock and Landlord Vision mainly to see if they come up with the same results.
They both work in slightly different ways.
I’m paying £288 per year for Hammock and over £800 for a mid range option from LV. So nearly £1100 a year. I keep hoping Hammock will be the one I settle on but right now I find LV gives far more user friendly reports and it’s much easier to access information on. Plus it sends invoices to tenants, which reduces late payment significantly.
The really good thing is that it’s tax deductable and as I’ve somehow got into the 60% situation that’s £660 less tax for the government to squander.
Member Since January 2016 - Comments: 472
10:30 AM, 5th February 2026, About 2 months ago
What’s the situation if you are a director of a property rental Ltd Co? You receive income as PAYE and dividend, not as rent; at least not directly.
Member Since June 2019 - Comments: 761
11:12 AM, 5th February 2026, About 2 months ago
The 50k is combined income from property (gross) and all self employment (also gross not net).
I think initially it was aimed at catching the dodgy operators like the ‘American sweet shops’ that sprang up and disappeared again before any tax was declared, but small businesses and landlords have been caught up in this mess.
Member Since October 2023 - Comments: 201
11:17 AM, 5th February 2026, About 2 months ago
Is it true, that landlords above pension age are exempt?
I heard this on a YouTube video, but I’m not sure if its a fact.
Member Since January 2024 - Comments: 340
11:17 AM, 5th February 2026, About 2 months ago
“The government admitted in the MTD impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.”
They have got to be kidding. The software alone is generally more than that and an accountant/bookkeeper would likely charge at least £115 quarterly. For those not using an accountant/bookkeeper it will probably cost several hundred pounds to unravel at the end of the year.
To answer a couple of questions:
1. £50k is gross rental income, or gross self-employed income (or a combination of both).
2. Earnings, pension, interest, dividends, etc are not income for MTD ITSA purposes.
Member Since June 2015 - Comments: 193
11:22 AM, 5th February 2026, About 2 months ago
Reply to the comment left by Ed Tuff at 05/02/2026 – 09:55
The expression “income” and “earnings” are misleading.
The £50,000 threshold is the gross rents received. It is the figure that is put in the “Total rents and other income from property” box (box 20 – property pages) in your tax return.
It is your share of the gross income, if you jointly own a property it is just your share.
It only relates to individuals, if you own property through a limited company it does not affect you.
If you have self employed income then the £50,000 is a combination of both your gross rents and your turnover from self employment. They are combined, not looked at separately.
Member Since June 2015 - Comments: 193
11:25 AM, 5th February 2026, About 2 months ago
Reply to the comment left by David100 at 11:17
“Is it true, that landlords above pension age are exempt?
I heard this on a YouTube video, but I’m not sure if its a fact.”
– 11:17No – absolute rubbish!
There are so many social media posts about tax that are just wrong. They are the new version of “the man down the pub”.
Take professional advice before you do anything..