Making Tax Digital for Landlords 2026.

From 6 April 2026, if you are a UK landlord with rental income over £50,000, you must use HMRC-recognised software to keep digital records and submit quarterly updates. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028 — catching most portfolio landlords within two years.

Who is affected, and when

MTD for Income Tax Self Assessment (MTD ITSA) rolls out in phases, based on your qualifying income (gross rental income, plus any self-employment income):

Date	Qualifying income
6 April 2026	Over £50,000
6 April 2027	Over £30,000
6 April 2028	Over £20,000

What you must do

Three things, in order of importance:

1. Keep digital records. All rental income and expenses must be recorded in HMRC-recognised software. A spreadsheet alone does not qualify.
2. Submit quarterly updates. Cumulative totals of income and expenses, due within one month of each quarter end.
3. Make a final declaration. An end-of-year confirmation replacing the property pages of your Self Assessment return.

Quarterly deadlines

Period	Submission deadline
6 April – 5 July	7 August
6 April – 5 October	7 November
6 April – 5 January	7 February
6 April – 5 April	7 May

These deadlines are cumulative. Your October update includes everything from April, not only July–October. BrickBook handles this automatically.

What data does HMRC need

Each quarterly update submits totals by category.

Income categories

• Total rents received
• Other property income
• Premiums for grant of lease
• Reverse premiums and inducements

Expense categories

• Premises running costs (rent, rates, insurance)
• Repairs and maintenance
• Financial costs — mortgage interest (Section 24 restricted)
• Professional fees (legal, management, accountancy)
• Cost of services (wages, gardening, cleaning)
• Travel costs
• Other allowable expenses

What the penalties look like

HMRC uses a points-based system for late submissions:

• Each missed deadline earns 1 penalty point.
• At 4 points — a £200 penalty.
• Every subsequent missed deadline — another £200.
• Points expire after 24 months of full compliance.

For the first year (2026–27), HMRC will not issue penalty points for late quarterly updates. Don't rely on this grace — build the habit now. Late payment penalties start at 3% of outstanding tax if unpaid after 15 days, with further charges after 30.

Failure to keep digital records can cost up to £3,000 per quarterly period.

Do you still need an accountant?

MTD does not replace accountants, but it changes their role. Many are already dropping small landlord clients because MTD makes manual data entry uneconomical. If your accountant charged £500 a year to do your property pages, expect that to rise sharply — or disappear entirely.

The alternative: use software like BrickBook to keep digital records and file quarterly updates yourself. Your accountant can still handle the final declaration and complex tax planning, but you handle the quarterly admin for a fraction of the cost.

And the PRS Database?

Separately, the Private Rented Sector Database launches in late 2026. All residential landlords must register themselves and every property. A different obligation from MTD, hitting the same group at the same time. BrickBook is built for both.