With just 14 days remaining until the introduction of Making Tax Digital (MTD) for Income Tax, Propertymark is urging letting agents and landlords to take immediate action to ensure they are compliant ahead of the 6 April 2026 start date.
The new rules, introduced by HM Revenue & Customs, represent the biggest change to the Self Assessment system since 1997 and will affect around 125,000 individuals in the property sector. This includes an estimated 118,000 landlords and thousands of sole traders working in real estate across the UK.
From April, those earning over £50,000 will be required to keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional annual Self Assessment tax return. The first quarterly reporting period will run from 6 April to 5 July 2026, with submissions due by 7 August 2026.
While more than 100,000 taxpayers have already signed up and over 15,000 quarterly updates have been successfully submitted through a voluntary testing programme, Propertymark is warning that time is now extremely limited for those who have yet to act.
Importantly, HMRC has confirmed that no penalties will be issued for late quarterly updates during the 2026-2027 tax year as the system beds in. However, a new points-based penalty regime will apply to missed deadlines in future, and late annual tax returns will still incur penalties.
Propertymark is encouraging agents and landlords to focus on immediate steps, including reviewing HMRC guidance, choosing appropriate ‘Making Tax Digital’ compatible software, and ensuring digital record-keeping processes are in place.
Nathan Emerson, CEO of Propertymark, said:
“Making Tax Digital represents one of the most significant changes to the tax system in a generation.
“Agents have a key role to play in supporting their clients through this transition, with guidance on timelines regarding selecting the right software, to embedding new reporting processes. With just days to go, there is now an urgent need for landlords and agents to ensure they are ready.”
Resources and guidance
Propertymark has produced a range of resources available to support members, including detailed guidance, key dates, and practical tools via its Knowledge Hub.
The organisation will also host a joint webinar with HMRC on 27 April 2026, aimed at helping agents and landlords better understand how the new rules operate in practice. Members can register here: Making Tax Digital – Understanding the changes coming for reporting property income to HMRC | Prope…
HMRC is urging anyone else in scope of Making Tax Digital for Income Tax to act now: read the guidance, choose software and sign up on GOV.UK. Those who genuinely cannot use digital tools can apply for an exemption.
