The annual tax return is gone. For landlords earning above £50,000, a new era of quarterly digital reporting to HMRC began on 6 April 2026, and the first deadline of the new system lands on 7 August. If you have not yet registered or set up your software, the window to act is closing.
Are you in scope?
Making Tax Digital for Income Tax applies to landlords whose total annual income from self-employment and property exceeds £50,000. That figure is gross income before expenses, not profit. Joint property owners count only their individual share. Income from PAYE employment, pensions, and dividends is excluded.
It applies to landlords holding properties personally, not through a limited company. If your portfolio sits in a company structure, MTD for Income Tax does not currently apply to you.
Not caught yet? The thresholds reduce over time. From April 2027 the limit falls to £30,000, and from April 2028 it drops again to £20,000. Most landlords will be drawn in eventually.
What the August deadline involves
The first quarterly return covers 6 April to 5 July 2026 and must be submitted to HMRC by 7 August 2026. Three further submissions follow across the tax year, each due within one month of the quarter end.
The content is less daunting than it sounds. Quarterly updates are information reports showing what a property earned and spent. There is no requirement to account for accruals or prepayments, and updates can be prepared on a cash basis. No tax is triggered by the quarterly submission itself. That comes later, via the final declaration, which replaces the traditional self-assessment return and remains due by 31 January.
Two things landlords keep getting wrong
First, registration is not automatic. You must sign up through HMRC's online service using your Government Gateway account. HMRC will not do it for you, and you cannot submit without being registered.
Second, HMRC does not provide software for Making Tax Digital. You need to choose and purchase your own HMRC-recognised compatible software before you can record or submit anything.
Around 780,000 sole traders and landlords fall within scope, yet fewer than a third had reportedly signed up by mid-April. If you are among them, the time for delay has passed.
On penalties
For the 2026/27 tax year only, no penalties will apply for late quarterly submissions. This soft landing offers some reassurance, but it does not extend to the final declaration, and from 2027/28 a points-based system kicks in, with a £200 financial penalty once four points accumulate.
The soft landing is not an invitation to wait. Landlords who use this first year to get their systems properly in place will be far better positioned when the penalty regime takes full effect.
Your checklist before 7 August
Confirm whether your combined gross income in 2024/25 exceeded £50,000. Register for MTD via your Government Gateway account if you have not already done so. Choose HMRC-recognised software, connect it to your bank accounts, and begin recording income and expenses digitally from 6 April. Submit your first quarterly update by 7 August 2026.
It is more straightforward than the headlines suggest. The hard part is getting started.
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