On 7th August 2026, the first quarterly submission deadline arrives for Making Tax Digital (MTD) for Income Tax.
For many landlords and self-employed individuals, this marks one of the biggest changes to the UK tax system in recent years.
If you’re affected, annual Self Assessment alone is no longer enough. Instead, you’ll need to keep digital records and submit quarterly updates to HMRC using compatible software.
Even if these changes don’t apply to you just yet, it’s worth understanding what’s coming, as the scheme will expand over the next few years.
What Is Making Tax Digital?
Making Tax Digital (MTD) is HMRC’s programme to modernise the tax system.
The aim is to make tax reporting more accurate by requiring businesses and landlords to keep digital records and submit information to HMRC throughout the year, rather than relying solely on an annual Self Assessment tax return.
The first quarterly update isn’t a tax return and doesn’t trigger a tax payment. Instead, it provides HMRC with a summary of your income and allowable expenses for the quarter.
Does Making Tax Digital Apply to Landlords?
From April 2026, Making Tax Digital applies to landlords and sole traders whose combined gross income from property and self-employment exceeded £50,000 in the 2024/25 tax year.
The scheme will then expand to:
- £30,000 or more from April 2027.
- £20,000 or more from April 2028.
This means many landlords who aren’t affected today are likely to come within the rules over the next two years.
What Do You Need To Do?
If Making Tax Digital applies to you, you’ll need to:
- Keep digital records of your income and allowable expenses.
- Use HMRC-recognised software.
- Submit four quarterly updates each tax year.
- Complete a final end-of-year declaration to confirm your overall tax position.
The first quarterly update covers the period 6 April to 5 July 2026 and must be submitted by 7 August 2026.
Don’t Panic – There’s A Soft Landing
If you’re worried you’ve left things a little late, there is some reassurance.
HMRC has confirmed that during the first 12 months of Making Tax Digital for Income Tax, it will not issue penalty points for late quarterly updates whilst taxpayers adjust to the new system. However, this doesn’t remove the obligation to comply, and penalties for late tax returns and late tax payments continue to apply.
The message from HMRC is clear: use this first year to become familiar with the process and establish good habits.
Why Preparing Early Makes Sense
Like many of the recent changes affecting landlords, Making Tax Digital is about moving from a reactive approach to a proactive one.
Keeping digital records throughout the year can help you:
- Stay organised.
- Understand your financial position more easily.
- Reduce errors.
- Avoid the January rush.
- Be better prepared for future reporting requirements.
Whilst it may feel like another administrative task, getting organised now is likely to make life much easier in the long run.
What We’re Seeing at Lifeboat Financial Services
Over the past few months, we’ve spoken to landlords who are unsure whether Making Tax Digital applies to them, what software they need, or how the quarterly reporting process works.
That’s completely understandable.
With so many legislative and compliance changes affecting the private rented sector, it’s easy to feel overwhelmed.
Through Lifeboat Financial Services, Kristina is helping landlords and business owners understand the new requirements, determine whether they’re within scope, and prepare for the transition to digital reporting.
Whether you need advice on HMRC-compatible software, help keeping digital records, support with quarterly submissions, or ongoing bookkeeping and accounting services, we’re here to make the process as straightforward as possible.
Making Tax Digital represents one of the biggest changes to Income Tax reporting in recent years.
Whilst the first quarterly deadline of 7 August 2026 only affects some landlords and businesses, many more will join the scheme over the coming years.
Taking time now to understand the changes and prepare your records will put you in a much stronger position as the programme expands.
If you’re unsure whether Making Tax Digital applies to you, or you’d simply like to discuss your options, Kristina at Lifeboat Financial Services would be delighted to help you understand what’s required and support you every step of the way.
This article is intended for general information purposes only and does not constitute tax or financial advice. Information is correct at the time of writing and is based on HMRC guidance. If you’re unsure how Making Tax Digital applies to your circumstances, you should seek professional advice.
