Do I have to pay tax every quarter now?

No. Quarterly updates are reports only. You still pay your tax in January and July.

My salary is over £50,000. Does that bring me in?

No. Only self-employment and property income count towards the threshold.

What happens if I miss a quarterly deadline?

HMRC gives you a penalty point for each late update, and a fine once you reach the points limit. We send your updates on time so you don't collect points.

Making Tax Digital for Landlords: Checklist

Does it apply to you?

Add together your gross rents and any self-employed takings for the year, before expenses. HMRC calls this your qualifying income. Wages, pensions, dividends and savings interest don't count.

HMRC looks at your tax return from two years earlier to decide when you join:

over £50,000 in 2024/25: you joined from 6 April 2026
over £30,000 in 2025/26: you join from 6 April 2027
over £20,000 in 2026/27: you join from 6 April 2028

Jointly owned property

Only your share of the rent counts towards your threshold.

Example: a couple own properties that bring in £44,000 a year in rent, split equally. Each has qualifying income of £22,000, so neither joins in April 2027, but both would join in April 2028 if their rents stay at that level.

What changes

You keep digital records of your rental income and expenses, using MTD-compatible software, or spreadsheets linked to HMRC with bridging software.
You send HMRC a summary of your income and expenses every quarter. These are updates, not payments.
After the year ends, you make a final declaration by 31 January, which replaces your tax return.
Your tax payment dates stay the same: 31 January and 31 July.

Quarterly deadlines

Using standard quarters, updates are due:

6 April to 5 July: by 7 August
6 July to 5 October: by 7 November
6 October to 5 January: by 7 February
6 January to 5 April: by 7 May

You can choose calendar quarters instead (for example 1 April to 30 June). The deadlines stay the same.

Your checklist

Add up your gross rents and any self-employed takings for 2024/25 and 2025/26.
If you're over the threshold, decide who will keep your records: you, your letting agent or us.
Choose HMRC-recognised software, or bridging software if you'd rather keep your spreadsheet.
Consider a separate bank account for your lettings. It makes digital records much easier.
Sign up for Making Tax Digital with HMRC, or ask us to do it for you.
Record income and expenses as they happen: the date, amount and type of each one.
Send each quarterly update by the 7th of the month after the quarter ends.
Make your final declaration and pay any tax due by 31 January.

If you use a letting agent

Your agent's statements can form the basis of your records, but the quarterly updates and final declaration are still your responsibility. We can collect the figures from your agent and file for you.

Exemptions

If you can't reasonably use digital tools, for example because of your age, a disability or where you live, you can apply to HMRC for an exemption. We can help with the application.

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Making Tax Digital for landlords: your checklist