Making Tax Digital Arrives in 2026: What Landlords Need to Know Ahead of Quarterly Reporting
- My Property Organiser
- Dec 11, 2025
- 3 min read
After years of delays, speculation and shifting timelines, Making Tax Digital (MTD) will finally come into force for landlords in April 2026. For the first time, landlords earning £50,000 or more in combined property and self-employment income will be required to keep digital records and submit quarterly tax updates to HMRC.
Under the current system, most landlords gather their figures once a year. Receipts come out of drawers, emails are searched, bank statements are printed and accountants attempt to piece together a full year of activity. It’s messy and stressful, but ultimately manageable. MTD removes that flexibility entirely.
From April 2026, landlords within the £50,000+ threshold will need to maintain accurate digital records throughout the year, submitting figures every three months. HMRC has made it clear that paper files, handwritten notes and informal spreadsheets will not meet the new requirements unless paired with compatible software.
An accountant based in Surrey stated:
“Annual self-assessment allowed landlords to clean everything up at the end of the year. MTD removes that safety net. You have to be organised all year round.”
Why this matters: quarterly tax reporting changes more than just admin
Quarterly submissions mean every rent payment, repair invoice, insurance premium and management fee must be logged as it happens, not months later. For landlords with multiple properties, or those managing complex mortgage structures, this is a massive change and will need a major behavioural change.
Inconsistent record keeping, a long-standing issue in the sector, becomes far riskier under a digital reporting system. Errors in early submissions can carry through the year, increasing the likelihood of penalties, corrections or compliance challenges later on.
Making Tax Digital - Who is Affected and When?
The rollout is intentionally staggered to give landlords time to adapt.
From April 2026 Landlords earning £50,000 or more from property and/or self-employment will be required to join MTD.
In future phases The threshold will drop to £30,000 and then £20,000 as you will see below:
Qualifying Income Threshold | MTD Start Date | Based on Income from the Tax Year |
Over £50,000 | 6 April 2026 | 2024/25 tax year |
Over £30,000 | 6 April 2027 | 2025/26 tax year |
Over £20,000 | 6 April 2028 | 2026/27 tax year |
A sector already under pressure faces another layer of complexity
The timing of MTD is significant. Landlords are already navigating one of the most challenging operational periods in recent memory. Rising mortgage costs, increased maintenance expenses, Renters Rights Bill and new compliance expectations have created a demanding environment long before tax digitalisation enters the picture.
For some landlords, MTD feels like “another layer added to a full plate,” particularly for those who manage portfolios informally or who still rely on paper or email-fragmented records.
Could MTD actually benefit landlords?
Some accountants argue that MTD may ultimately help landlords gain a clearer understanding of their financial performance.
Quarterly reporting forces visibility: landlords will know exactly where their profit sits, which properties underperform, and whether costs are spiralling, as it happens, not months later.
A Manchester accountant put it plainly:
“Quarterly updates aren’t just about compliance. They force landlords to run their portfolios like businesses, not hobbies. And that’s often where profitability improves.”
What is the Solution?
HMRC’s long-term goal is clear. Eliminate inaccurate reporting and move landlords onto real-time digital systems. But the practical challenge will fall on landlords themselves.
Those who adopt digital systems early will transition smoothly. Those who delay risk entering 2026 unprepared, disorganised and under pressure.
Sign up to a HMRC approved platform where you can file your quarterly accounts using one simply log in at the click of the button. With these new changes, its important you get a simple a straight forward piece of software to take away the stress.
