August 7th- we’ve reached the first deadline
Landlords with more than £50,000 in qualifying annual income from property and self-employment are now required to use Making Tax Digital for Income Tax.
Those affected should already be keeping digital records using HMRC-compatible software, with the first quarterly update due by 7 August 2026.
Landlords should check that they:
• Know whether their income puts them above the threshold
• Have signed up for Making Tax Digital
• Are using compatible accounting software
• Have recorded their property income and expenses digitally
• Are ready to submit their first quarterly update
The rules will extend to those earning over £30,000 from April 2027 and over £20,000 from April 2028, so more landlords will be brought into the system over the next two years.
HMRC has confirmed it will not issue penalty points for late quarterly updates during the first tax year, but penalties can still apply for late tax returns or tax payments.
Landlords who are unsure whether they are affected should speak to their accountant or check the latest HMRC guidance as soon as possible.