HMRC has updated its Making Tax Digital for Income Tax guidance, giving landlords a useful reminder of what the first year now looks like for those already inside the new system.
The guidance, updated on 2 June 2026, applies to sole traders, landlords and agents using HMRC’s new Self Assessment process. For landlords, the key point is that Making Tax Digital is no longer only a future deadline for everyone. The first group, those whose 2024 to 2025 Self Assessment return showed qualifying income above £50,000, started from April 2026.
This article is informational only, not tax advice. The practical issue for landlords is administrative: making sure property income and expenses are recorded digitally, the right software is authorised, and the first quarterly update is not left until the last few days.
Who is already in scope?
HMRC says Making Tax Digital for Income Tax is being introduced in stages. Landlords and sole traders with qualifying income over £50,000, based on the 2024 to 2025 tax return, need to use it from 6 April 2026. Those over £30,000 follow from 6 April 2027, and those over £20,000 from 6 April 2028.
Qualifying income means total turnover from self-employment and property income before expenses, based on the previous tax return. That matters for landlords with more than one income stream. A person who has both property income and sole trader income may need to look at the combined position rather than treating the rental business in isolation.
Here4 Landlords has previously covered the rules landlords were being asked to check before 6 April 2026. The latest HMRC guide is useful because it shifts the focus from preparation to the first operating year.
The first quarterly update deadline
For landlords using standard update periods, HMRC says digital records should be created from 6 April 2026. For those using calendar update periods, digital records should be kept from 1 April 2026.
The first quarterly update for the April 2026 start is due by 7 August 2026. The later first-year deadlines listed by HMRC are 7 November 2026, 7 February 2027 and 7 May 2027. The tax return for that first Making Tax Digital year is then due by 31 January 2028.
That gives landlords a clear reason to review records during June rather than waiting until August. By this point in the tax year, rent receipts, agent statements, repairs invoices, insurance costs, service charges and other property expenses may already be building up. If they are still sitting across emails, bank feeds, spreadsheets and paper files, the first update can become more stressful than it needs to be.
Digital records do not replace normal records
HMRC’s guidance says landlords or their agents need to create and store digital records of property income and expenses. It also says normal Self Assessment record-keeping still applies, including keeping original records or supporting documents, or copies of them, used to prepare the tax return.
In practical terms, the digital record should not be seen as a replacement for evidence. Landlords should still keep the underlying invoice, statement, receipt or other support for an entry. That is especially important where costs relate to repairs, maintenance, professional fees, insurance or mixed-use items that may need explanation later.
The guide also explains that digital records need basic information such as the amount, the date income was received or expenses occurred, and the category of income or expense. Landlords using an agent may want to check how the agent’s statements map onto those categories and whether anything needs to be adjusted before submission.
Software and linked records
HMRC does not provide Making Tax Digital software, so landlords need compatible software that can create digital records, send quarterly updates and support the tax return process. Some landlords may use one product for everything. Others may use more than one product, including bridging software connected to spreadsheet records.
The guidance is clear that where more than one product is used, records and submission software need to be digitally linked. Landlords who still use spreadsheets should not assume that a spreadsheet alone is enough. The question is whether the spreadsheet can be connected to compatible software in a way that meets HMRC’s requirements.
This is a good moment to check the basics with an accountant, bookkeeper or software provider: which product is authorised, who is responsible for submitting each update, what information the landlord needs to provide, and how errors will be corrected if something is discovered after an update has been sent.
Quarterly updates are summaries, not final tax returns
HMRC describes quarterly updates as totals of self-employment and property income and expenses. They are summaries, not tax returns. The tax return still comes later, after the landlord checks the whole-year position, adds or checks other income and gains, and records relevant reliefs or allowances in the software.
That distinction may help landlords avoid two opposite mistakes. One mistake is treating quarterly updates too casually because they are not the final return. The other is delaying them because every year-end adjustment has not yet been settled. The better approach is to keep records current, submit the required summaries on time, and then deal with annual adjustments through the later tax return process.
HMRC also says late quarterly updates in the 2026 to 2027 tax year will not attract penalty points, but the updates still need to be sent before the tax return can be submitted. Landlords should not treat the first year as optional. It is a chance to settle the routine before penalty rules become a more immediate concern.
What landlords can check now
Landlords already in the first Making Tax Digital group can use the June update as a prompt for a simple admin review.
First, confirm whether the £50,000 threshold applies and whether the correct HMRC sign-up steps have been completed. Second, check that compatible software has been chosen and authorised. Third, make sure property income and expenses from April onwards are being recorded in the right place, with supporting documents kept alongside them. Fourth, clarify who will send the quarterly update and what evidence they need before 7 August 2026.
For landlords below the first threshold, the guidance is still worth reading. The 2027 and 2028 start dates may feel distant, but the smoothest transition is likely to come from tidying records before the obligation arrives. Landlords with growing portfolios or mixed property and sole trader income should pay particular attention to qualifying income, because the threshold test may not be as simple as looking at one rent figure.
The wider message is straightforward: Making Tax Digital is becoming part of ordinary landlord administration. Treating it as a record-keeping workflow, rather than a last-minute tax season job, should make the first quarterly update easier to manage.
Sources
- HMRC, Use Making Tax Digital for Income Tax, updated 2 June 2026
- HMRC, Use Making Tax Digital for Income Tax: before you use this guide, updated 2 June 2026
- HMRC, Use Making Tax Digital for Income Tax: create digital records, updated 2 June 2026
- HMRC, Use Making Tax Digital for Income Tax: send quarterly updates, updated 2 June 2026
