HMRC is writing to nearly 900,000 landlords and self-employed workers as it prepares to introduce Making Tax Digital (MTD) for Income Tax in April 2026. The letters signal the start of a major compliance push that will overhaul the reporting of rental income.

Anyone earing over £50,000 from property or self-employment will be notified between now and late March that quarterly digital submissions will be mandatory from the 2026–27 tax year.

The new regime will require taxpayers to file quarterly income and expense updates through HMRC-approved digital software, with the first report for 2026–27 due on 7 August 2026.

MTD for Income Tax covers anyone earning more than £50,000 from property and self-employment combined. Annual self-assessment will remain in place, meaning landlords will have extra reporting obligations rather than a simplified process.

HMRC’s letters outline how MTD changes the current system, what software is needed, and the key deadlines. Those contacted are encouraged to start preparing now by selecting suitable MTD-ready software from the 7August 2026.

MTD for Income Tax covers anyone earning more than £50,000 from property and self-employment combined. Annual self-assessment will remain in place, meaning landlords will have extra reporting obligations rather than a simplified process.

HMRC’s letters outline how MTD changes the current system, what software is needed, and the key deadlines. Those contacted are encouraged to start preparing now by selecting suitable MTD-ready software.

Practical steps advised for landlords receiving letters should:

• Verify their qualifying income exceeds the threshold

• Research and select MTD-compatible software

• Make sure digital records are in place before April 2026

• Speak to an accountant if unsure about compliance requirements

According to HMRC, the correspondence will be issued in two phases: 2–13 February and 16–27 March. Landlords who suspect they have been contacted incorrectly should double check their income calculations first, and only then approach HMRC if discrepancies remain.