Landlords: reporting to HMRC every three months—how will it work?

If you have heard that landlords must send information to HMRC every three months, you are hearing about Making Tax Digital for Income Tax, often shortened to MTD.

But it does not affect every landlord immediately, and it does not mean paying tax every three months.

Here is what landlords in Luton and across England need to understand.

Who needs to use it?

The requirement is being introduced in stages, based on your combined gross income from property and self-employment, before expenses.

The first group is already within the system. These rules concern individuals reporting through Self Assessment; property held through a limited company falls under a different tax framework. Exemptions and special circumstances should be checked with your accountant.

It is income—not profit—that matters

A landlord receiving £36,000 in annual rent cannot deduct £15,000 of expenses and use the remaining £21,000 to assess the threshold.

Property and sole-trader income are combined. For example, £24,000 of gross rent plus £12,000 of self-employment turnover means £36,000 of qualifying income. For jointly owned property, it is your share of the income that counts.

Check the figures on the relevant tax return rather than guessing from the money left in your bank account.

What will landlords actually have to do?

You, or your authorised accountant or tax agent, will need to:

1. Keep digital records of rental income and expenses.

2. Use software compatible with Making Tax Digital for Income Tax.

3. Send quarterly updates through that software.

4. Complete the annual tax return, including any necessary adjustments and other income.

A letting agent’s statement can support your records, but receiving a statement does not itself submit anything to HMRC. Agree who will maintain the digital records and who will make the submissions.

What are the deadlines?

For landlords using standard tax-year update periods, the 2026–2027 timetable is:

The updates are cumulative: each includes the year-to-date figures. Calendar update periods are also available, with the same submission deadlines.

For landlords already required to use MTD, the next deadline is Saturday 7 November 2026.

Does this mean four tax returns or four tax bills?

No. Quarterly updates are summaries of income and expenses, not four separate tax returns. Sending an update does not trigger a payment.

Your normal tax payment timetable continues, including payments on account where applicable. The annual return remains necessary to finalise your position.

Will I need expensive software?

Not necessarily. HMRC recognises both free and paid options. You may also be able to use spreadsheets connected to compatible bridging software.

Choose the system with your accountant so it supports your income sources and avoids duplicated work. Simply emailing a spreadsheet to HMRC is not the required process.

What should landlords do now?

Check your start date, speak to your accountant and make sure your rental records are complete. Keep invoices, agent statements and details of costs paid directly by you.

At MyEstate, we believe clear rental records are part of responsible property management. If we manage your property, contact us about the statements and supporting records you need to share with your accountant.

Richard Gedall MNAEA | AARLA
Director | MyEstate Luton Limited
01582 380330
luton@my-estate.co.uk

Information checked on 3 November 2026. This article provides general information; your accountant should confirm how the rules apply to your circumstances.