Making Tax Digital
Making Tax Digital from April 2027: what landlords over £30,000 need to do
Making Tax Digital
From 6 April 2027, landlords and sole traders whose qualifying income was over £30,000 in the 2025 to 2026 tax year must use Making Tax Digital for Income Tax. That means keeping digital records and sending HMRC a short update every quarter through compatible software. The 28 October 2026 Budget confirmed that late-submission penalties will not apply to those quarterly updates in your first year.
You must join from 6 April 2027 if your qualifying income in the 2025 to 2026 tax year was over £30,000. HMRC looks at your Self Assessment return for that year and writes to you if you need to start. If you have both rental income and self-employment income, they are added together.
The threshold is based on income before expenses. A landlord with £32,000 of rent and £20,000 of costs is still over the threshold. Some people are exempt, for example where digital exclusion applies, and HMRC has said certain groups are exempt until further notice.
| Quarter (standard periods) | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
PROXERA
Connect your bank and PROXERA records every property's income and costs as they happen. Free to start.
Under the points-based system, each missed quarterly deadline earns a point and four points bring a £200 penalty. For landlords joining from April 2027, the Budget confirmed that late-submission penalties will not apply to quarterly updates in the 2027 to 2028 tax year. Two things still apply: you must send your quarterly updates before you can submit your final return, and the normal penalties for missing the annual tax return deadline still apply.
PROXERA keeps your digital records for every property, with income and spending pulled in through Open Banking and categorised for you. Connect Xero, and your quarterly figures are prepared for Making Tax Digital. They are submitted through HMRC-recognised software, and our in-house accounts team can look after that for you. PROXERA itself is not currently HMRC-recognised software.
PROXERA
Xero connected, quarterly figures prepared and your accounts looked after. Book a free property review to get started.
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Every certificate and record to keep for each rental, so nothing expires unnoticed.
Yes, if your qualifying income from property and self-employment was over £30,000 in the 2025 to 2026 tax year. HMRC will write to you.
Before. HMRC describes qualifying income as gross income from self-employment and property before expenses are deducted.
Not for landlords joining in April 2027. The Budget confirmed late-submission penalties will not apply to quarterly updates in 2027 to 2028 for this group. Annual return penalties still apply.
7 August, 7 November, 7 February and 7 May, for the standard quarterly periods.
From 6 April 2028, based on qualifying income in the 2026 to 2027 tax year.
PROXERA prepares your figures. They are submitted through HMRC-recognised software, and our in-house accounts team can look after that for you.
PROXERA
Book a free property review. We will look at your portfolio with you and, where you need it, introduce you to the right tax adviser, accountant or mortgage broker.
Information, not advice. This article is general information based on the Budget documents published on 28 October 2026. Announced rates still need to be passed into law. It is not a personal recommendation and does not constitute financial, investment, mortgage, tax or legal advice. Speak to a qualified tax adviser about your own position.
