Landlords spared late filing fines in first year of Making Tax Digital
2 months ago | 6 comments
Landlords face fines for not updating contact details under Making Tax Digital
9:49 AM, 9th February 2026, 2 months ago
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The government could impose a £1,000 fine on landlords who fail to update their digital contact details under Making Tax Digital (MTD).
During a government debate, Shadow Economic Secretary Mark Garnier criticised the penalty, warning it could have a significant impact on vulnerable taxpayers.
Under the scheme, which came into effect in April, landlords earning over £50,000 are required to maintain digital records and submit quarterly updates to HMRC using authorised MTD-compliant software.
Unprecedented and disproportionate
During the debate on the Finance Bill, Economic Secretary to the Treasury Lucy Rigby said that under the Making Tax Digital for Income Tax programme, HMRC will require customers to provide an email address or mobile phone number and keep those details up to date.
However, Mr Garnier raised concerns that, while this may be reasonable, taxpayers could face a £1,000 fine for failing to update their digital records.
He said: “It’s a perfectly reasonable request to keep details updated, but to enforce it, people can be subject to financial penalties of up to £1,000. As the Association of Taxation Technicians has said, the proposed £1,000 penalty is “unprecedented and disproportionate”. Much more importantly, there is no comparable HMRC penalty for failing to update a postal address or traditional form of contact.
“Are the government not going a bit too far? I remind them that this is about regular taxpayers, and this penalty could catch out people who are more vulnerable or less financially literate. Can the Minister commit to reviewing whether this £1,000 fine is too high and, indeed, whether we should be bringing it in?
Landlords won’t be forced into MTD
Ms Rigby claimed the issue will be kept under review and explained that older customers are more likely to be digitally excluded under MTD. She said the government will support safeguards, allowing those groups to continue accessing paper communications.
The government confirmed in its impact assessment that landlords won’t be forced into MTD if they cannot go digital, and that landlords can write to HMRC or call the department to be exempted from the scheme.
The government has also confirmed landlords won’t face fines for filing late in the first 12 months of the scheme.
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Member Since December 2015 - Comments: 292
10:11 AM, 9th February 2026, About 2 months ago
Just how much dystopia can the uk drift into before politicians wake up!!
Member Since October 2019 - Comments: 394
10:15 AM, 9th February 2026, About 2 months ago
Next, we’ll be fined for looking at someone the wrong way! It’s about all that’s left!
Member Since August 2019 - Comments: 59
11:30 AM, 9th February 2026, About 2 months ago
HMRC fines and in fact even motoring and parking fines are disproportionate to the mistakes made.
Member Since November 2020 - Comments: 134
12:41 PM, 9th February 2026, About 2 months ago
This is shocking. Self Assessment Tax Returns explicitly state that a taxpayer’s phone number need only be given, if the taxpayer is happy for HMRC to have that information.
So how come there can be a penalty for not providing information that is entirely voluntary?
Agent’s contact information has always been acceptable. Has that now changed?
Member Since July 2013 - Comments: 467 - Articles: 1
5:17 PM, 9th February 2026, About 2 months ago
Reply to the comment left by LaLo at 09/02/2026 – 10:15
The clownocracy just love their fines.
Just hoping Liebour get replaced by something better, but not expecting much if the Tories get in.
More fines, more bans, more treading heavily on the populace.
Member Since July 2014 - Comments: 59
6:01 PM, 9th February 2026, About 2 months ago
More ‘huge Gov overreach’ Fine fanaticism at its worst. Look at the fines coming up in the RRA . £7 to £40k plus.
Business busting proportions and far more than many high end fraud or negligence cases. Inept in justice will always end badly.
Member Since September 2024 - Comments: 33
1:36 AM, 10th February 2026, About 2 months ago
Please sign the petition if you have not done so. https://petition.parliament.uk/petitions/754639
Member Since February 2026 - Comments: 2
9:04 AM, 11th February 2026, About 2 months ago
This is a lie as we are being FORCED to go digital. Im a pensioner and I come from an era of black amd white TVs no mobiles phones etc etc. Technology has advanced significantly beyond some older people’s control and understanding. I appealed to HMRC pls I dont want to go digital and stay doing my own tax returns.i gave my rationale im getting older and cant keep up. Its depressing. Accountants are expensive Im trying now to get out and selling up as quickly as I can. But my letter of appeal numerous telephone calls mean nothing and not only am I getting older I have a medical condition Yet I still am being forced to do this when I have no idea of QC codes or software. I dont understand why they are doing this? I look forward to the day when I can live without the stress of all this.
Member Since January 2015 - Comments: 1438 - Articles: 1
2:39 PM, 14th February 2026, About 2 months ago
Reply to the comment left by LaLo at 09/02/2026 – 10:15
Aren’t we already?
Member Since January 2015 - Comments: 1438 - Articles: 1
2:52 PM, 14th February 2026, About 2 months ago
Reply to the comment left by SimonP at 09/02/2026 – 12:41
Because Labour’s Landlords mandatory Database will require a Landlords home address, not that of a company/letting agent/PO Box.
Looking forward to the first court case brought by a landlord (for themselves AND their family members) with the defence of a breach of ECHR and HR Acts (Article 8), Protection From Harassment Act (s4); Crime and Disorder Act (s32); Criminal Justice Act 1988/2003 (s39) etc etc for not complying with giving their home address on this Landlords Database.