-
News
-
Blog
-
Archive
The countdown has begun. With just two months remaining until 6 April 2026, over 864,000 landlords and sole traders across the UK must prepare for Making Tax Digital (MTD) for Income Tax. If you're a landlord earning more than £50,000 annually from property rental, this change will fundamentally transform how you report your tax affairs to HMRC.
What Is Making Tax Digital for Income Tax?
Making Tax Digital represents the government's initiative to modernise the UK's tax system. Rather than scrambling to compile receipts and records every January for your Self-Assessment return, MTD requires you to maintain digital records throughout the year and submit quarterly updates to HMRC using compatible software.
These quarterly updates are not additional tax returns they're light-touch summaries of your income and expenses. You'll still file your annual Self-Assessment return by 31 January, but the process becomes significantly easier since your software already contains the year's financial information.
Who Needs to Register?
From 6 April 2026, MTD applies to:
- Landlords earning over £50,000 from property income during the 2024-25 tax year
- Sole traders with similar income thresholds
The rollout will expand in phases. By April 2027, the threshold drops to £30,000, and by April 2028, it reaches £20,000. According to HMRC's official guidance, planning ahead now prevents last-minute stress.
Why Should Landlords Act Now?
Craig Ogilvie, HMRC's Director of Making Tax Digital, emphasises the urgency: "With two months to go, now is the time to act." Over 20,000 quarterly updates have already been successfully submitted through voluntary testing programmes, proving the system works smoothly when landlords prepare properly.
The benefits extend beyond compliance. Digital record-keeping helps you:
- Spread administrative tasks throughout the year
- Reduce errors in tax calculations
- Maintain better oversight of your property portfolio's financial performance
- Avoid the annual January panic
Getting Started: Your Action Plan
Choose Your Software Free and paid software options are available through HMRC-recognised providers. Once you record income and expenses, the software automatically generates summaries for HMRC.
Understand the Timeline Your first quarterly update will be due by 7 August 2026, covering the period from 6 April to 5 July. Subsequent updates follow in November, February, and May.
Know the Penalties Good news: HMRC won't issue penalty points for late quarterly submissions during your first 12 months. After this grace period, you'll receive penalty points for each late submission, with a £200 fine applied only after accumulating four points.
Seek Exemptions if Needed If you genuinely cannot use digital tools due to age, disability, or remote location, you can apply for an exemption.
Support Available
HMRC provides extensive free resources, including online guidance, webinars, and videos. If you work with a tax agent or accountant such as professional advisers at YRF Accountants consult them immediately about preparation strategies.
Frequently Asked Questions
Do I still need to file a Self-Assessment return? Yes. Your annual return is still due by 31 January, but quarterly updates make completion much simpler.
What happens if I miss a quarterly deadline? During your first year (2026-27), you won't receive penalties. Subsequently, penalty points accrue, with fines after four points.
Is the software expensive? Free options exist, with various paid solutions offering additional features for portfolio landlords.
The April deadline approaches rapidly. Visit GOV.UK's MTD guidance today, select your software, and embrace this digital transformation confidently.