01/10/2026
Making Tax Digital for landlords: reporting property income, thresholds and penalties
From 6 April 2026, Making Tax Digital for Income Tax became mandatory for the first group of landlords and sole traders. Over the next two tax years, the new rules, together with the reformed penalty system for late filing and late payment, will extend to many more property owners.
Any landlord who has not yet checked whether the new rules apply to them should do so without delay. The thresholds are set by reference to gross income rather than profit, so a landlord whose rental business makes only a modest profit, or even a loss, can still find themselves within scope.
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