Making Tax Digital for Landlords: What You Need to Do Before August 2026
MTD for Income Tax is live for landlords over the threshold. See the first quarterly deadline, software expectations and how to avoid submission stress.
TL;DR
MTD for Income Tax is live from 6 April 2026 for landlords over £50,000 gross
First quarterly deadline is 7 August 2026
You must use HMRC-recognised software; spreadsheets alone are not enough
Thresholds drop to £30,000 from April 2027 and £20,000 from April 2028
No penalties for late quarterly updates in year one, but final declaration is fully subject to penalties
Calculator and handwritten notes used for landlord tax planning and quarterly submissions.
Introduction
If your gross rental income (before expenses, before tax) was over £50,000 in the 2024-25 tax year, you're already in scope for Making Tax Digital. The rules kicked in from 6 April 2026, and the first quarterly deadline is 7 August.
That's not far away. If you haven't set anything up yet, here's what you need to know.
For landlords tracking income alongside compliance deadlines, LandoraHub keeps rental income and expenses per property in one place with certificate tracking, so quarterly submissions don't mean hunting through five systems.
What MTD Actually Requires
Making Tax Digital for Income Tax replaces the annual Self Assessment return with a different system. You keep digital records throughout the year, submit quarterly updates to HMRC, and then file a final declaration by 31 January.
Four updates a year instead of one, but each one is a summary: income in, expenses out, per property. You're not sending invoices or receipts. You're sending totals.
The catch is that you have to do it through HMRC-recognised software. You can't use a spreadsheet on its own, and you can't log into HMRC's own portal and type the figures in manually.
Who's In Scope Right Now
The threshold for 2026-27 is £50,000 gross qualifying income. That's rental income plus any self-employment income, before expenses are deducted. It excludes PAYE wages, pension income, dividends and interest.
If you own a property jointly, the income is split between owners. Unless you have self-employment income on top, you might not hit the threshold individually even if the property earns well above it.
HMRC wrote to landlords in scope earlier this year. If you didn't get a letter, that doesn't mean you're definitely out; it's worth checking based on your 2024-25 figures.
The thresholds drop going forward. £30,000 from April 2027. £20,000 from April 2028. If you're just under £50,000 now, plan ahead.
The Four Quarterly Deadlines
For 2026-27, the quarterly periods and deadlines are:
6 April to 5 July: deadline 7 August 2026
6 July to 5 October: deadline 7 November 2026
6 October to 5 January: deadline 7 February 2027
6 January to 5 April: deadline 7 May 2027
Miss a deadline and you start accumulating penalty points under HMRC's new system. Four points in a 24-month period triggers a £200 fine, with further fines for each subsequent missed submission.
HMRC has said there'll be no penalties for incorrect or late quarterly updates in the first year (2026-27), but you still have to submit them. The final declaration in January is fully subject to normal penalties.
💡 Don't lose a quarterly deadline to scattered records
LandoraHub tracks rental income and expenses per property with exports ready for your accountant or MTD software.
Start free, get the first quarter organised →
What Software to Use
You need HMRC-recognised software. The list is on GOV.UK and it's worth checking the current version; it changes as providers get approved.
For landlords who also want to track compliance, certificates and tenancy documents alongside their finances, a platform like LandoraHub keeps rental income and expenses per property in one place, alongside the compliance tracking you need under the Renters' Rights Act. That's less logging into multiple systems and less hunting for figures when a quarterly deadline arrives.
If you use an accountant, speak to them now. They can submit on your behalf but they need appropriate digital authorisation. Getting that in place takes time.
The Biggest Mistake Landlords Make
Treating MTD like Self Assessment, something to sort out in January.
Quarterly means quarterly. If you let your records slide for three months and then try to reconstruct what happened, it's painful. A gas bill from a tenant paid in May, a repair invoice from June, a rent payment that came in late, all of it needs to be in the system before the August deadline.
The landlords who find MTD manageable are the ones who log things as they happen. Twenty minutes a month is easier than three hours before a deadline.
Keep records per property. HMRC wants income and expenses broken down that way. If you're pooling everything into one account, now is a good time to separate it.
If You're Under £50,000 This Year
You're not in scope yet. But the threshold is dropping. And the habits you build now (recording income and expenses digitally, per property, as it happens) mean you won't be scrambling when your threshold year arrives.
Voluntary participation in the HMRC pilot is still open. Some landlords have found it worth doing early to understand the process before it becomes mandatory.
Frequently Asked Questions
Do I need MTD software if I'm under £50,000 gross?
No, not yet. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.
Can I still use a spreadsheet?
Yes, but only if it's linked to HMRC-recognised bridging software that can submit on your behalf. A standalone spreadsheet is not compliant.
What counts as "qualifying income" for the threshold?
Gross rental income plus any self-employment income, before expenses. PAYE wages, pensions, dividends and interest do not count.
Can my accountant submit the quarterly updates for me?
Yes, but they need digital authorisation from you first. This is different from standard accountant access; set it up now if you haven't.
What if I have properties in joint ownership?
Income is split between owners for MTD purposes. Each owner's share counts toward their individual threshold.
Are penalties the same as Self Assessment penalties?
No. MTD uses a new points-based system. Four penalty points in 24 months triggers a £200 fine, with more for continued non-compliance.
Track Income and Compliance in One Place
MTD is one of several things landing on landlords in 2026. Running rental income, expenses, certificates, tenancy records and compliance deadlines across separate systems is what causes gaps and missed deadlines.
LandoraHub keeps it all in one dashboard, with exports ready for your MTD software or accountant.
GOV.UK - Making Tax Digital for Income Tax guidance
HMRC - List of recognised software for MTD for Income Tax
HMRC penalty framework for late submissions
Disclaimer: This article is for general guidance only and does not constitute tax or legal advice. Tax rules change. Always check the current HMRC position or speak to a qualified accountant before acting on specific tax matters.
Next step
Build your deadline tracker with one property for free. Organise certificates and tenancy actions in one place, then verify final legal requirements through official channels.
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