HMRC has updated several pieces of Making Tax Digital for Income Tax guidance just days before the new regime starts for the first group of landlords on 6 April 2026. This is not a new tax, but it does make the compliance picture clearer for landlords who are likely to be caught by the first wave.
The main practical point is that landlords over the relevant threshold will be expected to keep digital records, use compatible software and send quarterly updates to HMRC. Earlier this month we looked at the broader Making Tax Digital preparation points for landlords; these newer updates matter because they show more clearly what HMRC expects in practice.
What has changed
On 26 March, HMRC updated its guidance on checking whether you need to use Making Tax Digital for Income Tax. The online tool now asks about the 2026 to 2027 tax year and exemptions, which should help landlords work out whether they are in scope and when they need to start.
On 27 March, HMRC also updated the publications covering digital record-keeping and quarterly updates. The main change was to bring the wording into line with the new Income Tax (Digital Obligations) Regulations 2026. References to older “notices” have been replaced with “directions”, and the documents now sit more clearly alongside the regulations that come into force on 1 April 2026.
The timetable itself has not changed. Landlords with qualifying income above £50,000 in the 2024 to 2025 tax year are due to start from 6 April 2026. The next phases are set for income above £30,000 from April 2027 and above £20,000 from April 2028.
Why this matters for landlords
The updated pages are useful because they clarify what counts towards the threshold and what HMRC expects once a landlord is in the system. HMRC says qualifying income is based on gross income from self-employment and property before expenses are deducted. If a landlord also has self-employment income, those amounts are added together for threshold purposes. If a property is jointly owned, only the landlord’s share counts towards their qualifying income.
That matters because some landlords may assume they are under the threshold if they focus on profit after costs, or because they look at one property in isolation. The updated sign-up guidance also says that landlords who need to use Making Tax Digital from 6 April 2026 should sign up before that date, and that anyone signing up must be registered for Self Assessment and have submitted a tax return in the last two years. If a landlord uses an agent, the agent can handle the sign-up instead.
What the new directions point to in practice
The refreshed quarterly update and digital record-keeping directions are not dramatic reading, but they underline that HMRC’s focus is on process. Compatible software must be used to keep and correct digital records, submit quarterly updates and deliver returns through HMRC’s systems.
The record-keeping direction highlights some groups that need special attention, including joint property owners, retailers and customers below the VAT registration threshold. For landlords, the joint-ownership point stands out because it is common in the private rented sector and can affect both record-keeping and threshold checks.
The quarterly update direction reinforces that landlords in scope will be expected to send income and expense information during the year rather than leaving everything until the usual Self Assessment deadline. HMRC has said there will be no penalty points for late quarterly updates in the first tax year for those mandated from April 2026, but other penalties can still apply, including around tax returns and late payment.
What landlords may want to check now
It may be worth checking your qualifying income using HMRC’s current rules rather than guesswork, then reviewing how your rental records are kept in practice. If income, invoices, agent statements and expense evidence are spread across paper files, inboxes and phone photos, quarterly digital updates are likely to be harder than they need to be.
Landlords with joint property income may also want to make sure their records show clearly what their own share is and how those figures are being tracked. If you use an accountant or tax agent, now is the time to check whether they are ready for Making Tax Digital for Income Tax, what software they want you to use, and what information they expect from you during the year. Where your own position is unclear, professional advice may still be needed.
A practical takeaway
The latest HMRC updates are not a major policy shift, but they are a useful sign that the April 2026 start is now moving from general awareness into operational detail. For landlords who are likely to be in the first wave, this is the point to confirm thresholds, tidy up record-keeping and check the official guidance while there is still a little time left. For landlords below the first threshold, the same pages are still worth a look because later phases are already mapped out.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: Sign up for Making Tax Digital for Income Tax
- GOV.UK: Digital record-keeping direction for Making Tax Digital for Income Tax
- GOV.UK: Making Tax Digital for Income Tax: Quarterly update direction
- legislation.gov.uk: The Income Tax (Digital Obligations) Regulations 2026
