HMRC has begun automatically registering landlords for Making Tax Digital (MTD) for Income Tax this month. Landlords who have not yet signed up for MTD may find HMRC has completed the registration for them.
The automatic sign-ups are being implemented in stages for individuals HMRC believes should already be using MTD for Income Tax. The rules have been in effect since 6 April 2026 for sole traders and landlords whose qualifying income from self-employment and property exceeded £50,000 in the 2024–25 tax year.
HMRC states that over 570,000 customers have joined the service, with more than 436,000 having submitted their initial quarterly update. Craig Ogilvie, HMRC’s director of Making Tax Digital, encouraged those not yet signed up to do so, highlighting that it allows them to maintain control and ensure details are correct from the start.
HMRC will use information from 2024–25 Self Assessment tax returns for registration and will contact taxpayers afterwards via online services or post. New guidance issued on 24 August advises that HMRC's existing information may not reflect changes made since a landlord's last tax return.
Once registered, landlords should verify their property and self-employment income sources, select compatible software, establish digital records from the beginning of the tax year, and submit any outstanding quarterly updates. Exemptions are available in certain situations, including for individuals who are digitally excluded, and those who believe they do not need to use MTD should contact Self Assessment general enquiries.
The deadline for the first quarterly update for most taxpayers, covering 6 April to 5 July 2026, was 7 August. However, HMRC will not impose penalty points for late quarterly updates during the 2026–27 tax year. From 6 April 2027, missed quarterly deadlines will incur penalty points, with a £200 fixed penalty after four points. MTD will also expand to include sole traders and landlords with qualifying income exceeding £30,000 from that date.