Landlords could face a £1,000 penalty for failing to keep their digital contact details up to date under Making Tax Digital (MTD), according to concerns raised in Parliament.
Shadow Economic Secretary Mark Garnier criticised the proposed fine during a Finance Bill debate, warning it could hit vulnerable taxpayers hard. The Association of Taxation Technicians has described the penalty as “unprecedented and disproportionate”.
No comparable penalty for postal addresses
Under Making Tax Digital for Income Tax, which came into effect in April for landlords earning over £50,000, HMRC requires taxpayers to provide an email address or mobile phone number and keep those details current. Failure to do so could trigger the £1,000 fine.
Garnier pointed out that no equivalent penalty exists for failing to update a postal address. “Are the government not going a bit too far?” he asked. “This penalty could catch out people who are more vulnerable or less financially literate.”
The criticism follows earlier warnings from Propertymark that quarterly tax filing requirements are pushing landlords closer to breaking point. The new rules require digital record-keeping and quarterly submissions to HMRC using MTD-compliant software.
Exemptions and safeguards available
Economic Secretary to the Treasury Lucy Rigby said the matter would be kept under review. She acknowledged that older customers are more likely to be digitally excluded and confirmed the government will support safeguards allowing those groups to continue accessing paper communications.
Landlords who cannot go digital will not be forced into MTD. Those seeking an exemption can write to HMRC or call the department directly. The government has also confirmed that landlords will not face fines for late filing in the first 12 months of the scheme.
For landlords already enrolled, the key message is clear: ensure your registered email and phone number remain current to avoid an unexpected penalty. HMRC’s Making Tax Digital guidance explains how to update contact details.
Editor’s view
A £1,000 fine for an outdated email address does seem heavy-handed, particularly when there’s no equivalent penalty for failing to update a postal address. Landlords navigating MTD already face a steep learning curve – adding disproportionate penalties for administrative oversights risks alienating the very taxpayers HMRC needs to bring onside.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 9 February 2026
Sources: UK Parliament, Association of Taxation Technicians, HMRC
Related reading: New quarterly tax rules push landlords closer to breaking point
