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 Unprepared for Making Tax Digital as First Deadline Nears

Hundreds of thousands of landlords may not be ready for the first Making Tax Digital (MTD) deadline, which falls on 7 August. Research indicates that a significant proportion of landlords have yet to sign up for the new HMRC requirements or are unaware of the changes.

Since April, sole traders and landlords with annual revenues above £50,000 are required to submit quarterly returns using HMRC-approved software. The first deadline for these submissions is rapidly approaching, but a survey by management platform Tide suggests that many landlords and sole traders are not prepared.

Tide surveyed 500 sole traders and landlords, finding that 22% of owners are still unaware of the upcoming changes. Additionally, 25% have not yet registered with HMRC for Making Tax Digital. Out of an estimated 864,000 individuals who would qualify for MTD in 2026, this could mean around 216,000 have not registered to file their first update.

The survey also found that sole traders and landlords expect the new tax administration process to require six full days of their attention over the next 12 months.

To support those struggling with the transition, Tide is offering advice across the country. From Monday 20 July, Tide experts will be present in Manchester, London, and Brighton, providing information on Making Tax Digital and giving out free ice cream. The initiative, called “Making Tax Delicious,” will see the Tide ice cream van at New Cathedral Street in Manchester on 20 and 21 July, London’s Victoria and Broadgate on 23 and 24 July, and Brighton’s New Road on 25 July.

Letting agents and inventory clerks should be aware that landlords who miss the first MTD deadline may face accumulating penalties. Ensuring clients are informed and prepared for the new requirements could help avoid administrative issues and fines.