5.65 Million Landlords Face Self Assessment Deadline: Essential Steps to Avoid Penalties and Prepare for Making Tax Digital

The Self Assessment Deadline Looms: Why It Matters

HM Revenue & Customs (HMRC) has issued a clear reminder: the deadline to file Self Assessment tax returns for the 2024–2025 tax year is 31 January 2026. Currently, over 5.65 million returns remain outstanding, including those from private landlords managing residential properties across the UK.

Missing the deadline can trigger immediate penalties and accrue interest on any unpaid tax. For landlords, who often manage complex income streams and allowable expenses, timely and accurate submission is critical to avoid costly compliance risks.

Key Obligations for Landlords

• File by 31 January 2026: Submit your 2024–2025 Self Assessment tax return on time.
• Pay any tax due by 31 January 2026: Late payments incur interest and penalties.
• Notify HMRC if unable to file on time: Contact HMRC ahead of the deadline to explain your situation and potentially reduce penalties.
• Consider High Income Child Benefit Charge (HICBC) payment options: If applicable, elect to pay via PAYE rather than Self Assessment by notifying HMRC before the deadline.

Preparing for Making Tax Digital (MTD) for Income Tax from April 2026

From 6 April 2026, landlords with rental income exceeding £50,000 must comply with Making Tax Digital for Income Tax, requiring:

• Quarterly digital submissions of income and expense summaries through HMRC-approved software.
• Maintaining digital records of all income and expenses.

This change represents a significant shift, especially for portfolio landlords and those with HMOs.

Risk and Impact Assessment by Landlord Profile

Practical Next Steps for Landlords

1. Begin Your 2024–2025 Self Assessment Early: Collect all income and expense details to avoid last-minute issues.
2. Confirm MTD Eligibility: Calculate rental turnover to determine if you cross the £50,000 threshold from April 2026.
3. Research Approved MTD Software: Trial options early to understand quarterly digital submission requirements.
4. Notify HMRC if Late Filing or Payment Expected: Early communication can mitigate penalties.
5. Decide on HICBC Payment Method: Inform HMRC if switching payment to PAYE.
6. Beware of Scams: HMRC will never request passwords via phone or email; always protect your login details.

Benchmarking and Support

Review your rental income and expenses for the prior tax year as a benchmark. Consulting a property tax specialist or accountant ensures tailored advice and accuracy.

How Rentals & Sales Can Assist

Our landlord intelligence hub provides tailored support:

• Portfolio Review: Assess rental income and compliance against MTD thresholds.
• Compliance Audit: Identify gaps in filings and prepare for deadlines.
• Pricing & Tax Strategy: Maximise rental income reporting efficiency.
• MTD Software Guidance: Help select and integrate digital tools for compliance.

Contact us today to safeguard your property tax compliance.

Disclaimer: This article provides general information and is not a substitute for professional tax advice. Please consult your accountant or HMRC for personalized guidance.