HMRC issues 12-month warning on MTD for landlords
In exactly 12 months, landlords earning over £50,000 must submit their first quarterly tax updates as part of the new MTD process.
A recent survey by Accountex found that 4 in 5 accountants see MTD as the biggest challenge of the next year.
1 in 3 accountants also said they feel unprepared for the deadline, with 1 in 10 feeling ‘very unprepared’.
Speaking to Accountex, accountant and owner of Swift Tax Refunds, Robert Jones, warns landlords about these new changes and how missing it could trigger escalating fines, starting with a £100 penalty, followed by daily £10 charges.
Digital tax deadline is fast approaching
“From April 2026, landlords earning over £50,000 will need to start submitting quarterly updates to HMRC under Making Tax Digital.
“The first of those deadlines, covering income and expenses from 6 April to 5 July, falls on 7 August. Missing it could trigger serious financial consequences.”
Missing deadlines will cost you – up to £900 fine
“Failing to file a return on time results in a £100 fine straight away. If the return is still outstanding after three months, daily £10 penalties start to add up, reaching up to £900.
“After six months, HMRC can charge a further £300 or 5% of the tax owed, whichever is higher. That same penalty applies again at the 12-month mark. In cases of deliberate delay, the fines can be even steeper.”
Late payment comes with its own penalties
“Even if you submit your returns on time, not paying your tax can still lead to penalties. You’ll be charged 5% of the unpaid tax after one month, another 5% after six months, and a further 5% if it’s still unpaid at 12 months. On top of that, interest continues to build from the moment your payment is late.”
The shift from yearly returns to quarterly updates
“For those used to doing everything in January, this marks a big change. You’ll now have to report every few months, and if you’re not using the right software or keeping digital records, you risk falling behind. The last-minute rush just won’t work anymore.”
Most people aren’t ready and that’s a problem
“Digital tax reporting might still feel like a future concern, but many sole traders and landlords are far from ready. Even if you’re not due to join the scheme until 2027, now is the best time to get ahead while there’s still room to learn without financial pressure.”
Changing habits is the real challenge
“To avoid penalties, people will need to shift their habits, from annual admin to regular digital updates. If you earn from both property and self-employment, you’ll need to keep separate records and file two sets of reports. It’s a step up in organisation, but not an impossible one.”
Getting set up early pays off
“Logging your income and expenses as you go instead of saving it all for later could help you avoid hundreds of pounds in fines once the rules kick in. Treat this coming year as a test run to avoid costly mistakes later.”
You May Also Enjoy
Strong rental supply continues amid seasonal slowdown in demand
Why Choose Wooden Blinds for Your Home?
Falling rates and rising wages ease first-time buyer challenge
Mansion Tax on Homes over £2 million
Autumn Budget 2025: Property Industry Reacts
