News from 3 June 2026
Read the current Making Tax Digital guide.
Update, 7 September 2026. The first quarterly deadline, 7 August 2026, has passed. Read the current Making Tax Digital guide for the remaining dates and HMRC’s first-year penalty position. The original June report follows.
HMRC’s June 2026 guidance explained the first year of Making Tax Digital for landlords and sole traders who joined in April. It covers digital records, software and the quarterly updates, with the first deadline on 7 August 2026.
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. This can affect landlords who have more than one source of income. 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.
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.
