More than 275,000 landlords and sole traders who should be using Making Tax Digital for Income Tax have yet to sign up, six months after the scheme launched for those with qualifying income above £50,000.
The National Residential Landlords Association published fresh analysis of HMRC figures on 15 October. It shows HMRC estimates 864,000 people fall into the first MTD cohort, including 259,000 with landlord income, yet only 588,204 had registered as of last month.
Auto-enrolment letters now landing on doormats mean affected landlords could be pulled into the system without having chosen software or checked that opening records are correct. HMRC started automatic sign-up in September for those who should be in the scheme but have not registered, and is writing to nudge them into action.
Of those who have signed up, only 535,374 had submitted the required quarterly updates. That leaves more than 52,000 reports already missing, with the second quarterly deadline for the 2026 to 2027 tax year just weeks away on 7 November.
Who must join MTD now and next
The first phase covers landlords and sole traders with qualifying income above £50,000. That test uses gross property and self-employment income before allowances or expenses are taken off.
From April 2027 the threshold drops to £30,000, pulling in more than one million extra people including 279,000 with landlord income. From April 2028 it falls again to £20,000, adding a further 975,000 people including 338,000 with landlord income.
Landlords who join part way through the year must still create digital records back to 6 April and include them in the first quarterly update. An annual tax return is still required by 31 January, and it cannot be filed if the final quarterly update for the year is missing.
Penalties and quarterly deadlines to track
There are no penalties for missed quarterly updates in the 2026 to 2027 tax year. From 2027 to 2028 penalty points apply, starting with the Q1 deadline on 7 August next year. Four points trigger a £200 fine, with a further £200 for each later missed deadline.
The quarterly update deadlines cover the prior three-month periods and fall on 7 August, 7 November, 7 February and 7 May. Landlords need compatible software or bridging software to send income and expense summaries each quarter.
Craig Ogilvie, director of Making Tax Digital at HMRC, said landlords should act now rather than wait to be signed up. “If you haven’t yet signed up, now is the time to do so,” he said. “Taking action now means you stay in control, can make sure your Making Tax Digital for Income Tax details are correct from the start, and have time to choose the software that works best for you, rather than waiting for HMRC to sign you up.”
HMRC auto-enrolment raises pressure before November
This follows Landlord Knowledge’s report on HMRC plans to sign up overdue landlords from September, which set out how automatic registration would work. The latest numbers show the scale of the catch-up still needed, with around one in three of those in scope yet to register.
Low awareness remains part of the problem. Landlord Knowledge’s August survey finding that half of affected landlords did not know they were in MTD pointed to a communications gap that HMRC reminder letters are now trying to close. Landlords who qualified on 2024 to 2025 returns should check now, and those near the £30,000 line should use the next six months to get records and software in order. Full HMRC guidance is set out in the Making Tax Digital for Income Tax collection.
What this means for landlords
- If you earn over £50,000: check MTD registration today and confirm your Self Assessment record and software are linked before the 7 November update.
- If records start late: rebuild digital records back to 6 April so the first quarterly submission covers the full year to date.
- If you are near £30,000: use gross income before expenses to test scope for April 2027 and pick compatible software early.
- Watch for: HMRC auto-enrolment and reminder letters, plus missing-update flags if quarterly figures have not been sent.
- Bottom line: around one in three in the current cohort is still outside the system, so early sign-up beats a forced entry with unchecked records.
Editor’s view
The numbers explain why HMRC reached for auto-enrolment. Missing updates at this scale in year one point to confusion rather than defiance. Landlords who sort software and backdated records before 7 November will avoid starting the points era on the back foot.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 16 October 2026
Sources: NRLA, HMRC
Related reading: HMRC: 1.1m more landlords and traders join MTD in 2027
