New Making Tax Digital rules for landlords and self-employed earners with income over £50,000 come into force on 6 April 2026, but only 50,000 of the 864,000 affected taxpayers have registered so far – just over 5 percent. The figures suggest that hundreds of thousands of landlords may be unprepared for the mandatory digital record-keeping requirements that will apply in less than three weeks.
Many landlords unaware of new obligations
Property industry experts warn that significant numbers of landlords remain unaware that MTD rules apply to their rental income. Karl McArdle, Co-Founder of The Property Buying Company, said many landlords still do not realise the digital reporting requirements extend to rental income and not just traditional business earnings. “A lot of landlords I speak to haven’t even heard of MTD, let alone signed up,” McArdle said. “They think it’s something that only affects tradespeople or shop owners, but if your rental income is over £50,000, you need to be ready by April.” The low sign-up rate is particularly concerning given the recent survey suggesting 80 percent of landlords feel prepared. The stark contrast between perceived readiness and actual registrations suggests many landlords may be overconfident about their compliance status.
What landlords need to do before 6 April
Under MTD for Income Tax Self Assessment, landlords earning above the threshold must keep digital records and submit quarterly updates to HMRC using MTD-compatible software. Annual Self Assessment returns will still be required alongside the new quarterly submissions. The government’s MTD software finder tool lists approved providers, though landlords should factor in costs and compatibility with their existing accounting systems when choosing. HMRC has indicated that landlords with combined self-employment and property income exceeding £50,000 in any tax year from 2025-26 onwards must comply. Those with income between £30,000 and £50,000 will follow from April 2027. This follows Landlord Knowledge’s February report on MTD contact detail penalties, which highlighted that landlords could face fines of up to £1,000 for failing to keep their HMRC details current – a requirement separate from the main digital record-keeping obligations. Industry bodies including the NRLA have partnered with software providers to offer discounted MTD tools to members, though many landlords remain either unaware of their obligations or uncertain about which software to use.
What this means for landlords
- If you earn over £50,000 from rent or self-employment: You must be registered and using MTD-compatible software from 6 April 2026 – not doing so risks penalties even during the soft-landing period.
- Watch for: Quarterly submission deadlines will begin immediately after registration, with the first update due by 5 August 2026 for Q1.
- Bottom line: With 95 percent of affected taxpayers still unregistered and just weeks to go, landlords should check their obligations and choose software now rather than risk last-minute complications.
Editor’s view
The registration gap is startling but not surprising. MTD has been on the horizon for years, yet HMRC’s communication to landlords specifically has been patchy at best. Landlords who have not checked their position should do so this week – the penalty regime may be softened for year one, but being caught unaware is never a good start.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 March 2026
Sources: The Property Buying Company
Related reading: NRLA partners with Taxd to help landlords meet MTD deadline
