Landlords spared late filing fines in first year of Making Tax Digital
3 months ago | 6 comments
Landlords face fines for not updating contact details under Making Tax Digital
9:49 AM, 9th February 2026, 3 months ago
18
Categories:
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.
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
Call for landlords not to be punished over Making Tax Digital
3 months ago | 5 comments
HMRC writes to landlords as Making Tax Digital deadline approaches
3 months ago | 24 comments
Member Since January 2020 - Comments: 93
5:48 PM, 14th February 2026, About 2 months ago
Why do HMRC need your email and mobile numbers when there are so many scam’s around. Do they ever contact you this way. I normally wait for written communication sent in the post when it comes to my tax matters.
Member Since February 2026 - Comments: 3
6:31 PM, 14th February 2026, About 2 months ago
The £1,000 penalty feels disproportionate, particularly when there’s no equivalent sanction for failing to update a postal address.
From a compliance perspective, this reinforces something landlords sometimes overlook: HMRC is moving toward a “digital-first accountability” model. That doesn’t just mean quarterly submissions — it means maintaining clean records, updated contact data and consistent audit trails.
We’re seeing many landlords underestimate how administrative oversights can now carry financial consequences. The exemption route is important, but landlords should document any digital exclusion claims carefully and keep written confirmation from HMRC.
MTD isn’t just a tax change — it’s a systems change. The landlords who treat it as an operational upgrade rather than a filing chore will be the least exposed.
Member Since November 2020 - Comments: 138
11:48 PM, 14th February 2026, About 2 months ago
Reply to the comment left by Judith Wordsworth at 14/02/2026 – 14:52
You are referring to the Landlords Database, whereas the article says:
“HMRC will require customers to provide an email address or mobile phone number”
It doesn’t mention the requirement for home addresses, just email and phone number.
Member Since February 2026 - Comments: 3
1:10 AM, 15th February 2026, About 2 months ago
Reply to the comment left by SimonP at 14/02/2026 – 23:48
I’ve been reading through the updated GOV.UK guidance and it’s clear that things are changing more than many landlords realise. From May 2026, Section 21 is gone. That means no more relying on the “no-fault” route — everything will have to be justified under Section 8 grounds.
What really stood out to me is how evidence-driven the process becomes. It’s no longer just about serving a notice and waiting. The notice must be spot-on, the correct grounds clearly stated, the notice period accurate, and deposit compliance flawless. Even small technical errors could mean starting again.
It feels like eviction is moving from something procedural to something much more structured and legal. Paperwork, service proof, arrears schedules, communication logs — all of it matters.
Personally, I think the biggest risk for landlords isn’t the change itself — it’s being underprepared for it. If your records are tidy and your documentation is strong, you’ll be in a far better position than someone scrambling after things go wrong.
Member Since December 2019 - Comments: 8
10:28 AM, 15th February 2026, About 2 months ago
With both the MTD legislation and the new rent reform act coming into effect around the same time, this could be…. interesting…..
Member Since February 2026 - Comments: 3
4:23 PM, 15th February 2026, About 2 months ago
Reply to the comment left by LPrince at 15/02/2026 – 10:28
let the fun and delays commence lol
Member Since September 2021 - Comments: 213
4:05 PM, 16th February 2026, About 2 months ago
Reply to the comment left by Anonymous at 11/02/2026 – 09:04
Dear Anon
I do not know whether you are just grumbling, or whether you have not obtained your MTD Exemption.
Have you really applied?
If you apply for an Exemption, HMRC will grant it to you.
Good luck.
Member Since February 2026 - Comments: 2
4:31 PM, 16th February 2026, About 2 months ago
Reply to the comment left by SCP at 16/02/2026 – 16:05
Hi Thank you for your response. I have written to have an exemption giving my circumstances and the response was a formal letter stating I “was not exempt”. I am saddened by the way small landlords are treated. I am trying to fold now as soon as possible.