Landlords across the UK, along with sole traders and self-employed individuals, are about to hear directly from HM Revenue and Customs as the rollout of Making Tax Digital (MTD) for Income Tax moves closer.
HMRC has confirmed it will be writing to people earning over £50,000 from property or self-employment, as they will be the first group required to join MTD from 6 April 2026. This includes many landlords and some agents operating as sole traders.
Under the new system, affected taxpayers will need to keep digital records and submit quarterly income and expense updates using compatible software. The first quarterly report for the 2026–27 tax year will be due by 7 August 2026.
The letters arriving during February and March explain who is affected, when they must start, and how MTD differs from the current once-a-year self-assessment process. Importantly, an annual tax return will still be required alongside the quarterly submissions.
MTD will expand over time, applying to those earning over £30,000 from April 2027 and over £20,000 from April 2028.
For landlords, early preparation is key — getting systems and software in place now will make the transition far smoother.
