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

Landlords Given Grace Period After Missing Making Tax Digital Deadline

Landlords who miss today’s Making Tax Digital deadline have a grace period to get their financial affairs in order, according to a report by The Negotiator. The new rules mean HMRC will no longer accept manual record-keeping for landlords with income over £50,000.

The Making Tax Digital deadline marks a significant change in landlord reporting requirements in Britain. Affected landlords must now use compatible digital accounting software, such as QuickBooks, Xero, or Sage Accounting, to keep records and submit digital summaries of their rental income and expenses to HMRC.

Jack Malnick, Co-Founder and Property Expert at Landlord Resource, highlighted that this is the first time landlords are required to send HMRC a digital summary of their rental income and expenses. He noted that annual Self-Assessment returns will be phased out by 2028, with digital records required throughout the year instead.

Landlords who have not yet switched to digital record-keeping should have already been alerted to start the process. The current grace period means that no fines or penalty points will be issued for late submissions at this stage, but this will change by the 2027/2028 financial year.

Key upcoming deadlines include 31st January 2027 for filing the final traditional self-assessment for the 2025/26 tax year, and 31st January 2028 for submitting the first digital self-assessments for the 2026/27 tax year.

Letting agents and inventory clerks should be aware of these changes, as they may impact the way landlords manage and report their rental income and expenses.