Landlords face first Making Tax Digital deadline

Landlords with qualifying income above £50,000 have nearly two weeks to submit their first Making Tax Digital (MTD) quarterly update.

HM Revenue and Customs says more than 864,000 landlords and sole traders are within the scope of the new digital tax requirement.

The first filing deadline falls on 7 August 2026.

The update must include a summary of income and expenses recorded during the first three months of the tax year.

For most people, that period ran from 6 April to 5 July.

Landlords keeping digital records

HMRC’s director of Making Tax Digital, Craig Ogilvie, said: “This is a landmark moment for the tax system.

“Hundreds of thousands of sole traders and landlords are now keeping digital records and will be sending their first quarterly update in the coming weeks.”

He added: “For those already using software, this should be straightforward and take minutes.

“If you haven’t signed up yet, there is still time – visit Gov.uk.uk and search ‘Making Tax Digital for Income Tax’ to get started.”

Check landlord software

Landlords should check that the software they intend to use is compatible before trying to submit their figures.

Some products include HMRC Assist, a digital support tool designed to identify possible errors before an update is filed.

Responsibility for the accuracy of the information remains with the taxpayer.

Once an update has been submitted, the software can provide an estimate of the tax bill based on the figures entered.

Reporting periods for landlords

Customers using calendar-based reporting periods will have to provide figures covering 1 April to 30 June.

HMRC says that the 7 August deadline applies to both groups.

Quarterly updates are not tax returns; they are brief summaries sent to HMRC through recognised compatible software.

An accountant or tax agent can also complete the registration on a customer’s behalf.

MTD is now compulsory

Making Tax Digital for Income Tax became compulsory in April 2026 for landlords and sole traders with qualifying income of more than £50,000.

The threshold will fall to more than £30,000 from April 2027, bringing another group of property owners and self-employed people into the system.

It will then be reduced to more than £20,000 from April 2028.

The quarterly reporting requirement does not replace the annual Self-Assessment return.

Customers must still file that return and pay any tax owed by 31 January 2027.

No penalty points will be issued for late quarterly updates during the first year of Making Tax Digital for Income Tax.

Penalties for late Self-Assessment returns and overdue tax payments will continue to apply.