When 305 landlords were asked about Making Tax Digital in January 2026, 88% said they were concerned about their readiness. That is not a fringe view. It reflects something many landlords feel but have not yet acted on: a vague awareness that something important is changing, combined with uncertainty about exactly what to do and when.
The good news is that the system is more manageable than the questions around it suggests. The first quarterly deadline is 7 August 2026. Here is what you need to have in place before then.
First: check whether MTD applies to you right now
MTD for Income Tax applies to unincorporated landlords whose combined gross income from property and self-employment exceeded £50,000 in the 2024/25 tax year. Gross income means total receipts before expenses, not profit. If your properties are held through a limited company, MTD for Income Tax does not currently apply to you.
If you are below the threshold now, it is worth knowing that the income limit reduces to £30,000 from April 2027 and £20,000 from April 2028. Planning early will save stress later.
Second: register with HMRC
This is where many landlords stall. Registration for MTD is not automatic. Despite being within scope, you must actively sign up through HMRC's online service using your Government Gateway account. HMRC will not register you and will not remind you. If you are in the first wave and have not yet registered, do it now.
Third: choose your software
HMRC does not provide software for MTD. You must use HMRC-recognised compatible software to keep digital records and submit your quarterly updates. The good news is that there is a broad range of options available at varying price points, many of which connect directly to your bank account and categorise transactions automatically. Once set up, the quarterly submission process becomes a straightforward check-and-send rather than a manual exercise.
Separate digital records are required for UK property income and any self-employment income. If you own properties overseas, these require their own record and submission too.
What the first submission involves
The first quarterly update covers 6 April to 5 July 2026 and must be submitted by 7 August 2026. It is an information report showing your income and expenses for the period. No tax payment is triggered at the quarterly stage, no tax adjustments are required, and the update can be prepared on a cash basis. For landlords who have kept digital records from the start of April, the submission itself should take very little time.
At the end of the tax year, a final declaration replaces the traditional self-assessment return and must be submitted by 31 January.
On penalties this year
No penalty points will be issued for late quarterly submissions during the 2026/27 tax year. This soft landing is deliberate, giving landlords time to adjust. However, it does not apply to the final declaration, and from 2027/28 a points-based penalty system takes full effect, with a £200 financial penalty triggered once four points accumulate.
The soft landing is breathing room, not a green light to delay.
The honest bottom line
The 88% who expressed concern in January were right to pay attention. But concern is only useful if it leads to action. Register, choose your software, start keeping digital records, and submit by 7 August. Done in the right order, this is an afternoon's work, not a crisis.
Our team can help you stay on top of your compliance obligations. Get in touch today
