11.48 Million Beat Self Assessment Deadline: What London Landlords Must Do Now and Prepare for Making Tax Digital

11.48 Million Taxpayers Filed Self Assessment On Time — Are You Among Them?

HMRC has confirmed that 11.48 million taxpayers submitted their 2024-25 Self Assessment tax returns by the 31 January 2026 deadline, with an impressive 97.25% filing online. This group includes a significant number of private landlords across the UK, particularly in London where the private rental sector remains substantial.

If you missed the deadline, it is crucial to file your return and pay any tax owed immediately to avoid penalties. HMRC charges an automatic £100 late filing penalty after 31 January, with further escalating fees if the delay continues. Similarly, unpaid tax after this date accrues interest and potential surcharges.

Why This Matters: Making Tax Digital for Landlords from April 2026

From 6 April 2026, HMRC will introduce the Making Tax Digital (MTD) regime for Income Tax for landlords whose property income exceeds £50,000 annually. This means quarterly digital submissions of income and expenses, replacing the traditional annual Self Assessment tax return format for these landlords.

Key points:

• The £50,000 threshold applies to total property income before expenses.
• Landlords must keep digital records and submit quarterly updates via compatible software.
• The first quarterly period under MTD will start on 6 April 2026.

Practical Implications for London Landlords

Single-unit landlords and accidental landlords:

• Many may fall below the £50,000 threshold and will continue with annual Self Assessment for now.
• However, maintaining digital records now will ease future transition.

Portfolio landlords and HMOs:

• Likely to meet or exceed the £50,000 income threshold and must prepare for quarterly submissions.
• Digital record-keeping and software adoption should start immediately.

Financial planning and cash flow:

• Quarterly reporting means you will need to monitor income and expenses more frequently.
• Consider the timing of tax payments and ensure sufficient cash flow to meet quarterly liabilities.

Compliance and operational adjustments:

• Invest time in choosing HMRC-approved MTD software that integrates with your accounting processes.
• Train your team or accountant on the new quarterly reporting requirements.

How to Prepare Now

1. File any outstanding 2024-25 Self Assessment returns and settle payments immediately. The sooner you act, the smaller the penalties and interest.

2. Sign up for MTD early via GOV.UK. Registering ahead of the April 2026 start date avoids last-minute technical issues.

3. Review and digitise your record-keeping. Maintain detailed electronic records of rent received, allowable expenses, and other relevant financial data.

4. Evaluate your property income against the £50,000 threshold. If close, consider how portfolio growth or rent increases could affect your obligations.

5. Consult your accountant or tax advisor about software options. Many solutions offer landlord-specific features and integration with property management systems.

6. Communicate with tenants if you manage properties professionally. While MTD is a landlord obligation, awareness can help in discussions about rent reviews or lease terms.

Next Steps: Scheduling Your Compliance Workflow

• Immediate: Confirm Self Assessment filing status and payments for 2024-25.
• Within 1 month: Register for MTD on GOV.UK, and select compatible software.
• By 3 months: Begin digital record-keeping for all property income and expenses.
• By 6 months: Conduct a trial quarterly submission internally or with your accountant.
• Ongoing: Monitor income regularly, update records promptly, and review cash flow to manage quarterly tax payments.

How Rentals & Sales Can Support Your Transition

Our landlord intelligence hub offers portfolio reviews to identify if you exceed the MTD threshold and compliance audits to ensure your records meet HMRC standards. We also provide advice on selecting MTD-compatible accounting software and strategies to optimise your tax position under the new regime.

Contact us to schedule a consultation tailored to your portfolio size and complexity — ensuring you meet deadlines confidently and avoid costly penalties.

Compliance Disclaimer: This article provides general information and does not constitute legal or tax advice. Landlords should consult a qualified accountant or tax advisor for advice specific to their circumstances.