Landlord Knowledge - UK Landlord News, Information & Guides

Half of landlords in MTD do not know they are in it, survey finds


Only 48 percent of landlords earning £50,000 or more believe they are already in Making Tax Digital for Income Tax, even though the duty applied to them from April 2026. August’s Landlord Survey 2026 puts the wider picture at 35 percent of landlords able to name the start date that matches their own income.

The survey compared what 276 landlords said about their start date with the gross property and self-employment income they reported. Among landlords above the £50,000 threshold, 44 percent thought they started later or fell below the thresholds, and 8 percent did not know where they stood.

With the next threshold wave six months away, the confusion points to a compliance gap rather than a publicity gap. HMRC wrote to large numbers of landlords ahead of launch, yet half of those already in scope do not recognise that the rules apply to them now.

April 2027 wave looks worse

Landlords with income between £30,000 and £49,999 must join from April 2027, but only 28 percent of them knew it. Nearly two-thirds named a different date, with many believing they were already in, and the rest did not know.

In the £20,000 to £29,999 band, due to join from April 2028, just 11 percent named the right year and 36 percent did not know. The pattern suggests each new wave will need its own push, since awareness does not appear to pass down the income bands on its own.

Richard Samuel, chief executive of August, said the scale of the gap had surprised his team. “These are not disengaged landlords. Three-quarters of our respondents own five or more properties and most have been letting for over a decade. If half of them do not know they are already inside the regime, the position among the sector’s smaller landlords is likely to be worse,” he said.

Three-quarters expect at least four extra hours a quarter

Landlords in scope expect the regime to cost real time. Three-quarters said it would add at least four hours of work every quarter, and a third put the figure at more than a day. Only 6 percent expected it to take less than an hour.

Of those already inside the regime, 83 percent said they submitted their first quarterly update on time and 12 percent submitted late. On record-keeping, 28 percent leave it entirely to their accountant, 26 percent use general accounting software such as Xero or QuickBooks, 25 percent use dedicated landlord software and 14 percent run a spreadsheet with bridging software.

This follows Landlord Knowledge’s report on HMRC’s warning to 1.1 million landlords and traders joining MTD in 2027. The August findings show why that warning matters: the 2027 wave is far larger than the 2026 group, yet barely a quarter of those affected know their start date.

Landlords who rely on a letting agent lean heavily on accountants, with 42 percent leaving digital records entirely to their accountant, while self-managing landlords are far more likely to handle it themselves. That split leaves two different risk points: agent-served landlords who assume everything is covered, and self-managing landlords who must pick workable software before the first quarterly deadline.

Survey skew means smaller landlords may fare worse

August notes its sample over-represents larger, limited-company and working-age landlords compared with the government’s English Private Landlord Survey 2024. The responses were self-selected from a mailing list of more than 5,000 landlords plus trade-body members.

Read plainly, that cuts both ways for the sector. Awareness looks poor among engaged, larger landlords, so smaller or less connected owners may be further behind. HMRC has already begun signing up overdue landlords from September, which raises the stakes for anyone who wrongly assumes they start later.

August published the full Landlord Survey 2026 findings and methodology on 12 October. It is the first of five planned releases, with further results due on 15, 19, 22 and 26 October.

What this means for landlords

  • If you earn over £50,000: you should already be keeping digital records and filing quarterly updates – check your position now rather than assuming your accountant has it covered.
  • If you earn £30,000 to £49,999: your start date is April 2027, six months away – confirm your software route and test it before the first quarter begins.
  • Watch for: the remaining four August survey releases through October, which may add detail on costs and readiness by portfolio size.
  • Bottom line: the most common error is believing you start later than you do, so match your own income band to HMRC’s thresholds in writing.

Editor’s view
Half of the landlords already in MTD do not know it, which turns a paperwork reform into an enforcement risk. The fix is simple but urgent: every landlord should write down their own threshold date and confirm who files each quarterly update. Waiting for a reminder letter is no longer a plan.

Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 October 2026

Sources: August Landlord Survey 2026
Related reading: HMRC: 1.1m more landlords and traders join MTD in 2027
 

About the Author

The Landlord Knowledge editorial news team is headed by Leon Hopkins
Editorial Team
The Landlord Knowledge editorial team covers UK buy-to-let and property investment news, policy, regulation, and finance. Our reporting focuses on the issues that matter most to private landlords and property investors across the UK. Headed by Leon Hopkins, author of The Landlord's Handbook.
RSS
Follow by Email
X (Twitter)