‘Act now’ landlords warned ahead of new digital tax rules coming into force

Craig Ogilvie at HMRC says landlords earning rental income over £50,000 per year must comply with Making Tax Digital requirements from April.

Landlords are being warned to ‘act now’ and get ready for new digital tax rules set to apply in less than two months.

HMRC has issued a reminder to 864,000 landlords and sole traders that they need to start using new tax reporting arrangements in April.

Property owners earning income from rent above £50,000 need to prepare for the Making Tax Digital (MTD) system, which requires updates every three months.

The Neg recently reported warnings that many landlords were not ready for the new rules, and Propertymark said previously that for many thinking of quitting it would be the last straw.

HMRC says landlords need to use recognised software to provide quarterly updates on their income, further rules affecting any self-employed worker earning £30,000 are due to come into force next year and £20,000 in 2028.

Tax returns are still required each January, HMRC says, as the new requirements are ‘light touch updates’.

With two months to go until MTD for Income Tax launches, now is the time to act.”

Craig Ogilvie, Director of Making Tax Digital at HMRC (main picture), says: “With two months to go until MTD for Income Tax launches, now is the time to act.

“A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully,” he says.

“This will make it easier for sole traders and landlords to stay on top of their tax affairs, and help ensure everyone pays the right amount of tax.”

Penalty points will be given for each late submission, with a £200 penalty only applied once four points are reached. This means occasional slip-ups won’t result in immediate fines.

But the Government says that customers joining MTD in April 2026 will not receive penalty points for late quarterly updates, for the first 12 months.

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