The tax change landlords need to prepare for now
The tax change landlords need to prepare for now Making Tax Digital for Income Tax has been in force since 6 April 2026 for landlords whose qualifying income exceeded £50,000 in the 2024/25 tax year.
The first quarterly update covering the period from 6 April to 5 July 2026 had a submission deadline of 7 August 2026. For landlords in this group who have not yet signed up, the requirement is live now and the responsibility to comply rests with the individual, regardless of whether HMRC has written to confirm it.
The regime is then extending to two further groups over the next two years. Landlords with qualifying income above £30,000 in the 2025/26 tax year must use Making Tax Digital from 6 April 2027. Those with qualifying income above £20,000 in the 2026/27 tax year must use it from 6 April 2028. For any landlord currently sitting below the £50,000 threshold, understanding where their qualifying income sits relative to the £30,000 level is the most useful planning step available before April 2027.
What qualifying income means
Qualifying income, as defined by HMRC, is the gross income from self-employment and property before expenses. It is not net profit. A landlord whose rental properties generate £35,000 of gross rent, even if expenses bring the taxable profit well below that figure, has qualifying income of £35,000. Combined with any self-employment income, this is the total that determines whether and when the requirement applies.
HMRC’s guidance states that if qualifying income is above the relevant threshold, it will write to confirm the requirement. However, the guidance is explicit that not receiving such a letter does not exempt a landlord from the obligation. HMRC provides a tool on gov.uk that allows any landlord to check their position across the 2024/25, 2025/26, and 2026/27 tax years.
What Making Tax Digital actually requires
The requirement has three practical elements. The first is registration: a landlord must be registered for Self Assessment and must have submitted a return in the past two years before they can sign up. The second is software: HMRC-compatible software must be chosen and authorised. The software records income and expenses digitally and submits the quarterly updates to HMRC. The third is the quarterly updates themselves, which replace the previous once-a-year Self Assessment return for in-year reporting, though the annual return is still required for the tax year before Making Tax Digital begins.
The quarterly update periods and their deadlines are: 6 April to 5 July, due by 7 August; 6 July to 5 October, due by 7 November; 6 October to 5 January, due by 7 February; and 6 January to 5 April, due by 7 May. Each quarterly update is a summary of income and expenses for that period. It is not a payment. Tax liability is still calculated and paid through the annual Self Assessment return.
Exemptions
The gov.uk guidance confirms that exemptions exist, including for those who are digitally excluded, meaning those for whom using the internet or a computer is not reasonably practicable. Landlords who believe they may qualify for an exemption should use the exemption checking tool on gov.uk or contact HMRC directly.
The practical step for September
Any landlord who believes their qualifying income may exceed £30,000 in the 2025/26 tax year and who has not yet assessed their Making Tax Digital position should do so now. April 2027 is seven months away. Choosing compatible software, getting used to digital record-keeping, and understanding the quarterly update process takes time to embed. Beginning that process in September 2026 is considerably less pressured than beginning it in March 2027.
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This article was originally published by BriefYourMarket and is reproduced here with their permission.
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