Lettings & tax update · Checked 27 October 2026 · UK Income Tax
Making Tax Digital for Income Tax is now an active reporting requirement for landlords within its scope. HMRC’s August update confirmed the first quarterly submissions and said it would begin enrolling eligible customers who had not signed up from September.
Who needs to check?
The first mandatory phase began in April 2026 for qualifying income over £50,000. Relevant gross property and self-employment income are combined; the test is not simply rental profit after expenses. HMRC says the threshold falls to over £30,000 from April 2027.
What changes in practice?
Affected landlords keep digital records and send quarterly updates through compatible software. Updates do not replace the annual tax return. HMRC states that no penalty points apply to late quarterly updates during 2026–27, but late-return and late-payment penalties still apply.
Your next step
Ask your accountant to confirm eligibility, software and submission responsibilities. Agree a regular exchange of rent, fee and expense records with your managing agent. Keep invoices and statements accessible throughout the year.
For property management, speak to & Co. Obtain tax advice suited to your circumstances.
Source: HMRC update, 12 August 2026. Check current eligibility and exemption guidance before acting.
