Navigating the 65% Surge in HMRC App Tax Payments: What London Landlords Must Do Now

Understanding the Recent Surge in HMRC App Payments

HM Revenue & Customs (HMRC) has reported a significant 65% increase in Self Assessment tax payments made via its app as the 31 January 2026 deadline for the 2024/25 tax year approaches. This surge reflects landlords’ growing preference for digital convenience and stresses the importance of meeting tax obligations promptly to avoid penalties.

Why This Matters to London Landlords

Whether you manage a single flat in Hackney, an HMO in Southwark, or a portfolio across Greater London, the Self Assessment deadline is crucial. Failure to file your tax return or pay owing tax by 31 January 2026 results in automatic penalties starting at £100, increasing with delay.

Looking ahead, from 6 April 2026, landlords with income above £50,000 must comply with Making Tax Digital (MTD) for Income Tax.

What Is Making Tax Digital (MTD) for Income Tax?

MTD mandates that landlords and sole traders with turnover over £50,000 submit quarterly income and expense summaries digitally using approved software. This aims to improve reporting accuracy but requires adjustment to landlords' tax filing processes.

Practical Implications for Landlord Profiles

• Single-Unit Landlords: If rental income remains below £50,000, MTD won’t apply yet. However, timely filing and payment by 31 January 2026 remain essential. The HMRC app can simplify payments.

• HMO and Portfolio Landlords: Often exceeding the £50,000 threshold, these landlords must adopt MTD-compatible software, track income and expenses quarterly, and proactively manage cash flows.

• Accidental Landlords: Recently surpassing the threshold? It's vital to understand your new obligations and consider professional advice to set up compliant processes.

Capital Gains Tax (CGT) Considerations

Landlords disposing of properties or rental assets after 30 October 2024 must carefully calculate CGT. HMRC offers adjustment calculators to help, but errors can lead to penalties.

High Income Child Benefit Charge (HICBC) Option

If affected by the High Income Child Benefit Charge, you can opt to pay via PAYE instead of Self Assessment. To arrange this, contact HMRC before the 31 January 2026 deadline.

Recommended Next Steps

1. File and Pay Promptly: Use the HMRC app or online services to submit your 2024/25 Self Assessment and pay any owed tax by 31 January 2026.
2. Prepare for MTD: If your rental income exceeds £50,000, choose MTD-compatible accounting software now and organise your documents for quarterly reporting.
3. Review Capital Gains Tax: For disposals after 30 October 2024, use HMRC tools to calculate CGT accurately.
4. Evaluate HICBC Options: Contact HMRC if applicable to consider paying the charge via PAYE.
5. Schedule Professional Advice: Consult tax advisers or property managers to optimise compliance and tax strategy.

How Rentals & Sales Can Help

We provide tailored portfolio reviews and compliance audits for London landlords. Our experts assist with MTD workflows, tax filing optimisation, and pricing strategies aligned with your financial goals. Contact us early in 2026 to confidently meet all HMRC deadlines.

Compliance Disclaimer: This article is for informational purposes only and does not constitute tax advice. Landlords should seek professional advice tailored to their circumstances.