Nearly 300,000 Landlords Get Ahead with Early 2025-26 Self Assessment Filings Amid New Making Tax Digital Rules

Record Early Filings Signal Changing Tax Landscape for Landlords

HM Revenue & Customs (HMRC) has revealed that 298,905 landlords and sole traders filed their 2025-26 Self Assessment tax returns within the first week of April 2026 — a new record. This surge coincides with the introduction of Making Tax Digital (MTD) for Income Tax, a key change affecting landlords and sole traders with turnover exceeding £50,000.

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

From 6 April 2026, landlords and sole traders with business turnover above £50,000 must keep digital records and submit quarterly income and expense summaries to HMRC using MTD-compatible software or apps. This is a shift from the traditional annual Self Assessment process to more frequent digital reporting.

Importantly, the annual Self Assessment tax return remains mandatory alongside quarterly submissions, but the data reported quarterly feeds into the final calculation. From April 2027, the turnover threshold triggering MTD obligations will fall to £30,000, expanding the number of landlords affected.

Why This Matters to Private Landlords

For landlords, especially those with multiple properties or HMOs, the move to quarterly digital reporting means:

• More frequent compliance tasks: Quarterly submissions require timely, accurate bookkeeping throughout the year, rather than a last-minute annual effort.
• Potential cash flow impacts: Quarterly reporting can highlight tax liabilities earlier, so landlords need to plan cash reserves accordingly.
• Increased digital literacy: Landlords must adopt HMRC-recognised software or apps, integrating them into their existing financial workflows.

Single-unit or accidental landlords with turnover below £50,000 are not immediately impacted but should prepare for the reduced threshold next year.

Practical Implications Across Landlord Profiles

Additionally, pensioner landlords who received Winter Fuel Payments and have income over £35,000 must account for repayments through Self Assessment, adding complexity.

Compliance Obligations and Risks

• Registration: Landlords new to Self Assessment or MTD must register promptly and obtain a Unique Taxpayer Reference (UTR).
• Timely quarterly submissions: Missing deadlines can trigger penalties.
• Annual Self Assessment filing: Still required, even with quarterly MTD reports.
• Notify HMRC of changes: Address updates, business closures, or income changes must be reported without delay.
• Phishing vigilance: HMRC warns of increased scams; landlords should verify communications via official GOV.UK channels.

Recommended Next Steps for Landlords and Agents

1. Confirm turnover: Calculate your rental income and expenses to determine if you meet the £50,000 threshold for 2026 or will meet the £30,000 threshold in 2027.
2. Register for MTD: If eligible, register early to avoid last-minute complications.
3. Choose MTD software: Select and set up HMRC-recognised digital tools or apps for quarterly reporting.
4. Organise bookkeeping: Establish a routine to capture income and expenses digitally and accurately.
5. File Self Assessment early: Take advantage of early filing to speed refunds and reduce errors.
6. Review Winter Fuel Payment implications: Pensioner landlords should assess repayment obligations.
7. Notify HMRC of changes: Keep personal and business details up to date.
8. Raise awareness among tenants and agents: Ensure all parties understand the new reporting cadence and data requirements.

How Rentals & Sales Can Support Landlords Through These Changes

Our team offers tailored services to help landlords navigate MTD and Self Assessment transitions, including:

• Portfolio reviews: Assess turnover and compliance readiness.
• Compliance audits: Identify gaps in digital record-keeping and reporting.
• Pricing strategy consultations: Adjust rent and cash flow planning to accommodate tax timing changes.
• Agent coordination: Streamline communications and data flow with managing agents.

Contact Rentals & Sales for a personalised compliance roadmap that fits your landlord profile.

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