HMRC is contacting nearly 900,000 landlords and self-employed individuals ahead of Making Tax Digital (MTD) for Income Tax, which takes effect from 6 April 2026. The letters mark the start of a compliance push that will reshape how rental income is reported and recorded.
Landlords and sole traders earning more than £50,000 from property or self-employment will receive correspondence between now and late March, confirming they must comply with the new quarterly reporting rules from the start of the 2026–27 tax year.
What Making Tax Digital means for landlords
Under the new system, affected taxpayers will be required to submit income and expense updates to HMRC every quarter using compatible digital software. The first quarterly submission for the 2026–27 tax year is due on 7 August 2026.
MTD for Income Tax applies to those with qualifying income over £50,000 from self-employment and property combined. Annual self-assessment returns will still be required alongside the quarterly updates, meaning landlords face additional reporting rather than a simpler replacement.
The HMRC letters explain how MTD differs from current self-assessment, what software will be needed, and the deadlines landlords must meet. Those receiving letters are advised to begin preparing now, including selecting MTD-compatible accounting software.
Phased rollout extends to smaller landlords
The initial threshold of £50,000 will drop in subsequent years. From April 2027, landlords earning over £30,000 will be brought into the regime, followed by those earning over £20,000 from April 2028.
This phased approach means most active landlords will eventually fall within scope, regardless of portfolio size. For those currently below the threshold, the message is clear: MTD compliance is not a question of if, but when.
Despite the shift to quarterly reporting, the 2025–26 tax return must still be filed by 31 January 2027 under the existing self-assessment rules.
Practical steps for landlords
Landlords receiving letters should:
- Confirm their qualifying income exceeds the threshold
- Research and select MTD-compatible software
- Ensure digital records are in place before April 2026
- Speak to an accountant if unsure about compliance requirements
HMRC has confirmed the letters will be issued in two waves: 2–13 February and 16–27 March. Landlords who believe they have been contacted in error should check their income calculations carefully before querying with HMRC.
Editor’s view
MTD has been delayed repeatedly, but the letters now landing on doormats make the April 2026 start date feel very real. Landlords who have been putting off software decisions or record-keeping upgrades are running out of runway. The time to act is now – not in March.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 4 February 2026
Sources: HMRC
Related reading: Government seeks landlords to pilot Renters’ Rights Act database
