Landlords are being urged to get ahead of their tax affairs as Making Tax Digital (MTD) edges closer, with higher-earning property investors facing a sharp rise in reporting obligations. From April 2026, some landlords could be submitting as many as ten filings to HMRC within a two-year transition period – a significant administrative shift for the buy-to-let sector.
Making Tax Digital rules for landlords from April 2026
Under the government’s MTD programme, landlords with gross property income above £50,000 a year will be required to keep digital records and submit quarterly updates to HMRC using approved software from April 2026. Those earning between £30,000 and £50,000 will follow a year later, from April 2027.
The first quarterly deadline is 7 August 2026, covering income and expenses from 6 April to 5 July. Further updates will then be due every three months, with a second deadline on 7 November.
Crucially, quarterly updates do not replace the traditional self-assessment process. Landlords will still need to submit full annual tax returns for the 2024-25 and 2025-26 tax years under the existing system. For many, that overlap is what creates the prospect of up to ten separate submissions in a relatively short timeframe.
For landlords used to one annual return, this is a structural change – not a minor tweak.
NRLA warning on landlord compliance risk
The administrative burden has prompted warnings from landlord bodies. Chris Norris, policy director at the National Residential Landlords Association (NRLA), told The Telegraph that confusion is a real risk as the new system beds in.
“Ignorance is not a defence, but I think this is going to be confusing for people,” he said. “Several submissions when you normally do one is very confusing.”
Norris cautioned that landlords who are not organised could “quite innocently” duplicate figures or miss submissions altogether, potentially leading to penalties. The NRLA is therefore encouraging landlords to finalise their self-assessment earlier than usual during the transition.
This concern will resonate with smaller portfolio landlords who manage their own finances rather than using accountants. Quarterly reporting may sound light-touch on paper, but in practice it requires consistent record-keeping and familiarity with new software.
What HMRC claims Making Tax Digital will deliver
HMRC insists the changes will ultimately benefit landlords by improving visibility over their finances. A spokesperson said MTD users will submit “simple quarterly summaries of income and expenditure”, with much of the work handled automatically by compatible software.
According to HMRC, this should reduce the burden of the final annual return, as figures will be pre-populated, and give landlords a clearer picture of their tax position throughout the year.
However, the government’s own MTD impact assessment paints a more cautious picture. Landlords earning £50,000 are expected to face average transitional costs of £285, plus ongoing additional costs of £115 a year. For many buy-to-let investors already grappling with higher mortgage rates and tighter regulation, that is another margin squeeze.
As Landlord Knowledge has previously reported, the policy risks pushing some landlords towards professional tax support they may not have needed before – adding further cost to running a rental business.
Editor’s view
Making Tax Digital is being sold as a simplification, yet for landlords it looks more like a compliance expansion. Quarterly reporting may improve HMRC’s data flow, but it shifts time, cost and risk onto property investors. The landlords who prepare early will cope; those who leave it late may pay the price.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 12 January 2026
Sources: HMRC statements; National Residential Landlords Association; The Telegraph; Making Tax Digital impact assessment.
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