Making Tax Digital for Income Tax Self Assessment applies to landlords with qualifying income above £50,000 from 6 April 2026. Quarterly digital reporting to HMRC is now mandatory for affected landlords. The threshold drops to £30,000 from April 2027.
Making Tax Digital for Income Tax — landlords in scope from today
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) comes into force for landlords and self-employed individuals with qualifying gross income above £50,000 from 6 April 2026. This is not a preparation deadline — it is the commencement date. Affected landlords who have not yet joined are non-compliant from today.
Who is in scope
MTD ITSA applies to landlords whose gross property income — before expenses — exceeded £50,000 in any of the three preceding tax years. For the 2026-27 tax year, the reference period is the 2023-24, 2024-25, and 2025-26 tax years. If gross rental income exceeded £50,000 in any one of those years, MTD ITSA applies from 6 April 2026.
The threshold is gross income, not profit. Landlords with large portfolios generating high rental turnover but modest profit margins are not exempt.
What MTD ITSA requires
In place of a single annual Self Assessment return, landlords in scope must:
- Maintain digital records of income and expenses using MTD-compatible software
- Submit quarterly updates to HMRC — one for each quarter of the tax year (April–June, July–September, October–December, January–March)
- Submit an End of Period Statement after the end of the tax year, replacing the annual return
- Submit a Final Declaration confirming the figures are correct
Quarterly updates must be submitted within one month of each quarter end. The first quarterly update deadline for the 2026-27 tax year is 7 August 2026 (for the April–June quarter). Subsequent deadlines are 7 November, 7 February, and 7 May.
Compatible software
HMRC does not provide its own MTD ITSA software. Landlords must use HMRC-recognised third-party software. A full list is available at gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax. Commonly used options include QuickBooks, FreeAgent, Xero, and several property-specific platforms.
Upcoming thresholds
- April 2027 — MTD ITSA extends to landlords with qualifying income above £30,000
- April 2028 — MTD ITSA extends to landlords with qualifying income above £20,000
Landlords below the £50,000 threshold are not in scope now but should monitor the 2027 and 2028 extensions.
Penalties
For the 2026 to 2027 tax year, HMRC says there will be no penalties for missing quarterly update deadlines. However, affected landlords must still keep digital records and submit the quarterly updates before they can submit their tax return.
Action required
- Check whether you are in scope — review gross rental income for 2023-24, 2024-25, and 2025-26
- Register for MTD ITSA at gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-income-tax if not already registered
- Select and set up compatible software before the first quarterly deadline of 5 August 2026
- Speak to your accountant if you are unsure whether you are in scope or have questions about the transition
Also this week
Renters' Rights Act: rent repayment orders — maximum award doubles from 1 May 2026 (Action, England — National)
The Renters' Rights Act 2025 doubles the maximum rent repayment order (RRO) award from 12 months to 24 months of rent, effective 1 May 2026 — 25 days from this briefing. A tenant whose landlord is found guilty of a qualifying offence — including operating an unlicensed HMO, unlawful eviction, breach of a banning order, or failure to comply with an improvement notice — may apply to the First-tier Tribunal for repayment of up to two years of rent paid.
The doubled cap applies to tenants in England. The qualifying offences remain the same; only the ceiling on the award changes.
Landlords should ensure HMO licences are in place, improvement notices are being complied with, and no banning order conditions are being breached. The increased exposure significantly raises the cost of regulatory non-compliance from 1 May. Source: Renters' Rights Act 2025, Section 42, legislation.gov.uk
Renters' Rights Act: preparing for periodic tenancies — new structure from commencement (Review, England — National)
The Renters' Rights Act 2025 abolishes fixed-term assured tenancies for new lettings from the commencement date. All new residential tenancies in England from commencement will be periodic tenancies with no fixed end date. Commencement is expected in autumn 2026, with the precise date to be confirmed by commencement order.
Landlords and agents should begin reviewing tenancy agreement templates now. Fixed-term clauses, break clauses, and provisions that rely on a fixed-term structure will need to be removed or rewritten. Standard assured shorthold tenancy agreements will no longer be compliant for new lettings from commencement. Source: Renters' Rights Act 2025, landlordinsights.co.uk/updates
Deadlines this week
7 August 2026 — First MTD ITSA quarterly update due for landlords in scope (covering April–June 2026 quarter). Subsequent deadlines: 7 November 2026, 7 February 2027, 7 May 2027. No penalties for missed quarterly deadlines in 2026–27, but updates must be submitted before the End of Period Statement.
1 May 2026 — Rent repayment order maximum doubles to 24 months of rent under the Renters' Rights Act 2025. All landlords with properties in England should audit licensing compliance before this date.
Landlord Insights — landlordinsights.co.uk — Sourced from gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-income-tax and legislation.gov.uk. Not legal advice.
This content is for general informational purposes only and does not constitute legal, financial, or professional advice. Always verify information against the original source and seek independent professional guidance before acting on any regulatory matter.