This piece is by HM Revenue & Customs
The 125,000 landlords and sole traders in the real estate sector with a turnover of more than £50,000 from self-employment and property have just weeks left to prepare for MTD for Income Tax.
From 6 April 2026, those with income above the threshold must use compatible software to keep digital records, send four simple quarterly updates of their income and expenses and submit their tax return to HM Revenue and Customs (HMRC).
New statistics released by HMRC show an estimated 118,000 landlords and 3,000 sole traders working in real estate across the UK will be required to use MTD for the 2026 to 2027 tax year.
Another 4,000 work in the real estate sector and are also landlords.
Most customers will receive a letter from HMRC confirming they need to join, which also explains what they need to do and includes a QR code linking to GOV.UK guidance.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, says: “MTD for Income Tax is a generational change and support is there for everyone who needs it.
“The quarterly updates aren’t tax returns – they’re simple summaries your software auto-populates, spreading the admin throughout the year, rather than leaving it all towards the January Self Assessment deadline.
“Go to GOV.UK – choose your software, read the guidance and get ready now.”
About 100,000 sole traders and landlords have already signed up for MTD for Income Tax, with more than 15,000 quarterly updates successfully submitted through a voluntary testing programme.
For most, the first quarterly update under MTD for Income Tax will cover the period from 6 April to 5 July 2026 and will need to be submitted by 7 August 2026.
A new points-based system for late submissions applies, where a £200 fine is only triggered once four points are reached, meaning the occasional slip-up will not result in an immediate fine.
No penalty points will be issued for late quarterly updates for the 2026 to 2027 tax year – though points will still apply to late tax returns.
Free software options are available, with a range of paid packages also on offer to suit different needs.
Once all your digital records of income and expenses have been created, the software will use them to generate your quarterly update.
Those joining MTD for Income Tax in April 2026 will still file their Self Assessment return for the 2025 to 2026 tax year in the usual way by 31 January 2027.
The first tax return that most customers will submit using their MTD compatible software, covering 2026 to 2027, will be due by 31 January 2028.
People with a tax agent should speak to them about preparing.
HMRC’s research shows awareness among the agent community is 99.6% and agents represent around two-thirds of the customers in scope for MTD for 2026 to 2027.
HMRC is urging anyone else in scope of MTD for Income Tax to act now: read the guidance, choose software and sign up on GOV.UK.
Those who genuinely cannot use digital tools can apply for an exemption.
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MTD for Income Tax will be introduced in phases for sole traders and landlords:
| Date joining MTD | Qualifying income | Q1 update due | Q2 update due | Q3 update due | Q4 update due | Self Assessment return due |
| 6 April 2026 | Earned £50,000+ during 2024-25 tax year | 07/08/2026 | 07/11/2026 | 07/02/2027 | 07/05/2027 | 31/01/2028 |
| 6 April 2027 | Earned £30,000+ during 2025-26 tax year | 07/08/2027 | 07/11/2027 | 07/02/2028 | 07/05/2028 | 31/01/2029 |
| 6 April 2028 | Earned £20,000+ during 2026-27 tax year | 07/08/2028 | 07/11/2028 | 07/02/2029 | 07/05/2029 | 31/01/2030 |
