HMRC writes to landlords as Making Tax Digital deadline approaches

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.