Insights
Making Tax Digital for Landlords: Are You Ready for the First HMRC Deadline?
by Melisa Cindil
Making Tax Digital is now in effect for thousands of landlords across the UK.
From 6 April 2026, landlords who meet the qualifying income threshold must keep digital financial records and submit quarterly updates to HM Revenue and Customs using compatible software.
With the first quarterly deadline approaching on 7 August 2026, landlords should check whether the new requirements apply to them and make sure their property records are organised.
What is Making Tax Digital?
Making Tax Digital for Income Tax is a new way for landlords and sole traders to record and report their income and expenses to HMRC.
Those included within the scheme must:
Those included within the scheme must:
- Keep digital records of relevant income and expenses
- Use Making Tax Digital compatible software
- Submit quarterly updates to HMRC
- Complete their tax return through compatible software
- Pay any tax due by the usual deadline
Quarterly updates do not replace the annual tax return. They provide HMRC with regular summaries based on the financial information recorded throughout the year.
Which landlords are affected?
Landlords are generally required to use Making Tax Digital from 6 April 2026 when their total qualifying income from property and self employment was more than £50,000 during the 2024 to 2025 tax year.
The threshold is based on gross income before expenses are deducted, rather than the final profit made from the rental property.
The threshold is based on gross income before expenses are deducted, rather than the final profit made from the rental property.
For example, a landlord receiving £55,000 in annual rent could fall within Making Tax Digital even if their taxable profit is considerably lower once repairs, management fees and other allowable expenses have been taken into account.
Property and self-employment income are combined when assessing the threshold. Income from employment through PAYE, pensions and dividends does not normally form part of the qualifying income calculation.
Landlords remain responsible for checking whether they need to use the system, even if they have not received a letter from HMRC.
What is the first Making Tax Digital deadline?
What is the first Making Tax Digital deadline?
The first quarterly reporting deadline for landlords included within Making Tax Digital is:
7 August 2026
The remaining quarterly deadlines for the 2026 to 2027 tax year are:
- 7 November 2026
- 7 February 2027
- 7 May 2027
Landlords must use compatible software to generate and submit summaries of their recorded property income and expenses.
What records should landlords keep?
Making Tax Digital requires landlords to maintain digital records of their property finances.
These may include:
- Rental payments received
- Letting and property management fees
- Repairs and maintenance costs
- Insurance payments
- Contractor invoices
- Professional fees
- Other property related income and expenses
For each transaction, landlords should record the date, amount and relevant income or expense category.
Keeping receipts, invoices and rental statements organised throughout the year will make quarterly reporting and the end of year tax return easier to manage.
Can landlords continue using spreadsheets?
Landlords may be able to continue using spreadsheets, provided they are connected to software that is compatible with Making Tax Digital.
This is often known as bridging software. It allows financial information held within a spreadsheet to be submitted digitally to HMRC.
Alternatively, landlords can use dedicated accounting software or authorise an accountant or tax agent to manage the process on their behalf.
HMRC recommends choosing suitable software before signing up for Making Tax Digital.
What happens if a quarterly deadline is missed?
HMRC has confirmed that penalty points will not be applied for late quarterly updates during the 2026 to 2027 tax year. However, affected landlords must still keep digital records and submit all required quarterly updates before completing their tax return.
Penalties may also continue to apply when a tax return is submitted late or a tax bill is not paid by the relevant deadline.
Landlords should therefore avoid treating the first year as an opportunity to delay. Allowing records to fall behind could make future submissions and annual reporting much more difficult.
Will more landlords be affected?
The qualifying income threshold is being reduced over the next two tax years.
Making Tax Digital will apply to those with qualifying income above:
- £50,000 from 6 April 2026
- £30,000 from 6 April 2027
- £20,000 from 6 April 2028
This means many landlords who are not currently included will need to adopt the system in the near future.
Landlords approaching one of the lower thresholds may benefit from improving their record-keeping now, rather than waiting until the requirements become mandatory.
Making Tax Digital checklist for landlords
Landlords should take the following steps:
- Check the gross property income shown on their tax return
- Include any qualifying self-employment income
- Confirm whether Making Tax Digital applies
- Choose compatible accounting software
- Speak with an accountant or tax adviser where necessary
- Organise rental income and expense records digitally
- Prepare for each quarterly deadline
- Keep personal and property transactions clearly separated
Using a dedicated bank account for rental activity may also make income and expenses easier to monitor.
How professional property management can help
Making Tax Digital remains the landlord’s tax responsibility, but clear and organised management records can make financial reporting considerably easier.
A professionally managed tenancy can provide accurate records of rent collected, property management fees, contractor invoices, maintenance expenditure and tenancy dates.
Oakheart Lettings supports landlords across Essex and Suffolk with property marketing, tenant referencing, rent collection, maintenance management and ongoing tenancy administration.
Whether you own one rental property or manage a growing portfolio, our experienced team can help you keep your investment professionally managed and your property records organised.
To arrange a rental valuation or discuss our property management service, contact Oakheart Lettings today.
