Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Landlords Face First Making Tax Digital Deadline in August 2026

Landlords and sole traders are approaching the first quarterly deadline under Making Tax Digital for Income Tax. The first submission is due by 7th August 2026, covering the period from 6th April to 5th July 2026, or 1st April to 30th June for those using calendar quarters.

Accountants have warned that there is widespread confusion about the new requirements. Some landlords are unclear about whether the rules apply to them, and there are misconceptions about the frequency and nature of tax payments and submissions under the new system.

Making Tax Digital became mandatory from 6th April 2024 for landlords and sole traders with qualifying income above £50,000. The income threshold will fall to £30,000 from April 2027 and to £20,000 from April 2028, which will bring almost all landlords within the scope of the rules.

Affected taxpayers must now keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional annual self-assessment process. This change adds to the administrative pressures already faced by landlords, who are also dealing with other regulatory changes.

HMRC will not issue late-submission penalties for missed quarterly updates during the first year of Making Tax Digital. However, from 2027/28, repeated missed deadlines could result in £200 penalties under a new points-based regime.

The phased rollout of Making Tax Digital for Income Tax represents a significant change in tax administration for the buy-to-let sector. The majority of landlords are expected to be affected by 2028.