HMRC starts auto-enrolling landlords this month: Here's what Making Tax Digital actually requires
Making Tax Digital for Income Tax has been mandatory since 6 April 2026 for sole traders and landlords whose qualifying income from self-employment and property exceeded £50,000 in the 2024/25 tax year. More than 570,000 people have now signed up and over 436,000 had submitted their first quarterly update, according to HMRC's figures published in mid-August 2026. From September 2026, HMRC has begun enrolling those who should be using the regime but have not yet registered, doing so in stages over the coming months. If you are in scope and have not yet signed up, you may receive notification of your enrolment from HMRC rather than choosing your own timing.
Who is in scope right now
The current threshold is clear. If your total qualifying income, meaning your gross income from self-employment and property income combined before expenses, exceeded £50,000 in the tax year ending April 2025, you are required to use Making Tax Digital for Income Tax from 6 April 2026. Qualifying income is the total before expenses, not your taxable profit. A landlord with £55,000 of gross rent who claims significant allowable expenses is still in scope even if the taxable profit is substantially lower.
Limited companies are outside the regime entirely. Landlords who hold their properties through a limited company are not subject to Making Tax Digital for Income Tax, though other reporting requirements apply.
The threshold drops to £30,000 from 6 April 2027, which will bring a considerably larger cohort of landlords into the regime.
What the quarterly updates involve
The regime requires four quarterly updates per tax year, submitted through HMRC-compatible software. The four deadlines for the 2026/27 tax year are 7 August 2026, 7 November 2026, 7 February 2027, and 7 May 2027. Each update is a summary of income and expenses for the preceding quarter. The updates are described by HMRC as light touch rather than a full tax return, and the software handles the submission once the data has been entered.
The Self Assessment tax return deadline of 31 January remains unchanged. The software retains the information submitted through the quarterly updates, which simplifies the preparation of the annual return considerably.
HMRC's sign-up guidance is explicit that unfiled quarterly updates must be submitted before the year-end filing can be completed. Landlords who have been auto-enrolled will need to use compatible software to catch up on any missed updates for the year so far.
The penalty position for 2026/27
HMRC has confirmed that no penalty points will be charged for late quarterly updates during the 2026/27 tax year. This is a one-year easement designed to support the transition. Quarterly updates are still mandatory and should be submitted as soon as possible, but the financial penalty for missing a deadline in this first year does not apply.
From 6 April 2027, the penalty points system takes effect for missed quarterly deadlines. Four late submissions in a year result in a £200 fixed penalty, and each further missed deadline attracts an additional £200. The easement period is a genuine window of opportunity to get the process established correctly before the consequences of non-compliance become financial.
If you have been auto-enrolled and believe you should not be
HMRC's guidance confirms that landlords who are auto-enrolled but believe they do not meet the qualifying income threshold should contact Self Assessment general enquiries directly. Exemptions exist in some circumstances, including for those who are digitally excluded. These should be raised with HMRC as early as possible rather than simply not complying.
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