Landlords urged to prepare for the next Making Tax Digital deadline

An industry body is warning landlords ahead of another Making Tax Digital deadline.

Propertymark has urged landlords and sole traders already using Making Tax Digital (MTD) for Income Tax to send their second quarterly update to HMRC by 7 November 2026.

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 a further group of landlords, property owners and self-employed people into the system.

No penalty points for late quarterly updates

Propertymark says landlords won’t be hit with penalty points if they submit their quarterly Making Tax Digital updates late during the 2026–27 tax year.

The industry body said: “People already using Making Tax Digital must keep digital records and send updates through compatible software. Quarterly updates summarise income and expenses; they are not tax returns or tax payments.

“Each update covers the tax year to date, so a correction to earlier records can be included in the latest update without resending the previous one.

“Before the November deadline, users should check that their records are up to date, their software is connected to HMRC and the figures it has produced are correct.

“An update is still required if there was no income or expenditure during the period. HMRC says there will be no penalty points for late quarterly updates during the 2026–27 tax year, but it must receive the updates before a user can submit their tax return.”

Help landlords prepare for Making Tax Digital

The industry body adds that letting agents can help landlords prepare for Making Tax Digital.

Propertymark said on its website: “Letting agents can raise awareness among landlord clients and direct them to HMRC’s guidance, particularly if a landlord may cross the April 2027 threshold. Agents can also review whether their landlord statements arrive regularly and clearly show rental income, fees, charges, and expenses. This information can help landlords keep accurate digital records.

“Landlords preparing for Making Tax Digital should check whether it applies to them, speak to their accountant or tax agent where they have one, and explore compatible software. Options include software that works with existing spreadsheets.”

The news comes as landlords who have not signed up for Making Tax Digital (MTD) may soon find that HMRC has done it for them.

The tax authority is beginning automatic registration, in stages, for people it believes should already be using MTD for Income Tax.