Buy-to-let landlords are better prepared for Making Tax Digital than many sole traders, with new research showing 80 percent feel ready ahead of the April 2026 deadline.
Research commissioned by Wolters Kluwer Tax and Accounting found that landlords have higher levels of preparedness than sole traders, where just 64 percent reported feeling ready for the digital tax changes.
Quarterly reporting starts in April
Bas Kniphorst, EVP and managing director of Wolters Kluwer Tax and Accounting Europe, said the findings show landlords are largely on track despite initial concerns about the transition. “Making Tax Digital changes how individuals manage and report their tax affairs,” he said.
The research offers a more optimistic picture than earlier surveys, which suggested many landlords were unprepared for the quarterly digital reporting requirements. From April, landlords with property income above £50,000 must keep digital records and submit quarterly updates to HMRC using compatible software.
Awareness must turn into action
Kniphorst acknowledged that while the headline readiness figures are encouraging, there is still work to be done. “With April 2026 fast approaching, the priority now must be turning awareness into action, supported by clear guidance, the right technology and trusted professional advice,” he said.
He added that with appropriate support, MTD could deliver better financial visibility and long-term resilience for landlord businesses.
Penalty relief in first year
HMRC has confirmed that penalty relief will apply in the first year of MTD implementation. Landlords who make genuine efforts to comply but struggle with the new system will not face immediate fines, giving some breathing room for those still getting to grips with the requirements. However, landlords can still face £1,000 fines for issues such as outdated contact details.
The threshold drops to £30,000 in April 2027, bringing more landlords into scope. HMRC has published a software finder tool to help landlords identify compatible products for their needs.
Editor’s view
The doom and gloom around MTD may have been overdone. With 80 percent of landlords feeling ready and first-year penalty relief in place, the transition looks more manageable than the headlines suggested. The real test comes when quarterly filing begins.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 February 2026
Sources: Wolters Kluwer Tax and Accounting
Related reading: Government launches MTD software finder as April deadline nears
