Landlords urged to act as Making Tax Digital deadline looms

With less than two weeks to go until Making Tax Digital comes into force, an industry body is urging letting agents and landlords to take action.

Under the controversial scheme, from 6 April 2026, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HM Revenue & Customs using authorised MTD-compliant software.

Propertymark is encouraging landlords and letting agents to focus on immediate steps, including reviewing HMRC guidance, choosing appropriate ‘Making Tax Digital’ compatible software, and ensuring digital record-keeping processes are in place.

Significant changes to the tax system in a generation

Propertymark says that despite the government announcing it will waive penalty points for late submissions during the first 12 months of Making Tax Digital, landlords and letting agents should start preparing now.

Nathan Emerson, CEO of Propertymark, said: “Making Tax Digital represents one of the most significant changes to the tax system in a generation.

“Agents have a key role to play in supporting their clients through this transition, with guidance on timelines regarding selecting the right software, to embedding new reporting processes.

“With just days to go, there is now an urgent need for landlords and agents to ensure they are ready.”

The industry body is hosting a webinar with HMRC on 27 April 2026 to discuss the impact of Making Tax Digital on landlords and letting agents, as the qualifying income threshold is set to fall to £20,000 from April 2028, although this remains under review.

No advantage to Making Tax Digital

As previously reported by Property118, despite the government claiming Making Tax Digital will help landlords, an accountant says this is not the case.

Simon Misiewicz previously 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 Making Tax Digital impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.