Making Tax Digital for Landlords: Deadline and Thresholds
A new Making Tax Digital for landlords deadline is on the horizon, but the new rules are already changing how landlords report their income to HMRC, and thousands more will need to comply over the next two years.
New research from property management platform Lendlord found that 17.7% of landlords in its analysis received more than £50,000 in annual rental income. That puts more than one in six above the current income threshold for Making Tax Digital, or MTD as it is known, although whether they must comply depends on their individual circumstances.
With the Making Tax Digital for landlords threshold falling in April 2027 and again in April 2028, you need to understand what the rules mean and how to prepare.
What is Making Tax Digital?
Making Tax Digital for Income Tax changes how landlords and self-employed people report their finances to HMRC.
Instead of relying on an annual Self Assessment return, those covered by the rules must keep digital financial records and send quarterly updates using compatible software.
If you are within the threshold, you must still submit a final tax return each year. The rules change how you report income, not how much tax you owe or when you pay it.
Making Tax Digital for landlords thresholds
The government is introducing MTD gradually, based on qualifying annual income.
Start date | Qualifying income |
6 April 2026 | Over £50,000 |
6 April 2027 | Over £30,000 |
6 April 2028 | Over £20,000 |
Importantly, the qualifying income means your gross income before expenses, not your profit.
It also combines property and self-employment income. For example, a landlord who receives £25,000 in annual rent and earns £20,000 through self-employment has £45,000 in qualifying income.
HMRC generally uses the relevant previous tax return to determine when someone must join. The rules apply to eligible individuals, rather than limited companies, and certain exemptions are available.
What records must landlords keep?
You must use MTD-compatible software to create and maintain digital records of your property income and expenses.
These should include:
Rent received from tenants
Letting agent and management fees
Repairs and maintenance costs
Insurance payments
Other allowable property expenses
It is good practice to record your transactions regularly rather than trying to reconstruct an entire quarter from bank statements and receipts.
Existing spreadsheets may still be suitable if you connect them to HMRC through compatible bridging software. Alternatively, dedicated accounting software can automate much of the process.
When are the quarterly deadlines?
If you joined MTD in April 2026, you should already be working to these Making Tax Digital for landlords deadlines:
Deadline | Reporting period |
7 August 2026 | First update |
7 November 2026 | Second update |
7 February 2027 | Third update |
7 May 2027 | Fourth update |
If you come into scope for the tax year 2027/28, these are the deadlines you will need to meet:
Deadline | Reporting period |
7 August 2027 | First update |
7 November 2027 | Second update |
7 February 2028 | Third update |
7 May 2028 | Fourth update |
Quarterly updates are summaries, not full tax returns, and submitting one does not trigger your tax payment. You will still need to submit your full tax return, as usual, by 31 January the following year.
What happens if you miss a deadline?
MTD introduces a points-based penalty system for late submissions, alongside penalties for late tax payments.
However, HMRC will not issue penalties for missing quarterly update deadlines during the 2026/27 tax year. You must still submit the updates before completing your annual return.
How can you prepare?
If you are already covered or expect to join soon, take these steps:
Check your qualifying income. Include gross rental income and any self-employment income.
Choose suitable software. Check HMRC's list of compatible products, including free and low-cost options.
Organise your records. Separate rental transactions from personal spending wherever possible.
Speak to your accountant. Agree who will maintain the records, submit updates and complete the annual return.
Check your registration. Make sure you have enrolled or that HMRC has registered you.
Helping you meet Making Tax Digital for Landlords deadlines
MTD brings with it additional responsibilities for landlords who are already busy. If you are worried about hitting your Making Tax Digital for landlords deadlines alongside your other tasks, outsource your property management to Executive Property Management Solutions. We offer either tenant support services or a full-service letting management package so you can choose the tasks you hand over to our expert and professional team. Contact us today to find out more.
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