THE PROPERTY FILTER TAKE
MTD (Making Tax Digital) for Income Tax expands to landlords with qualifying income over £30,000 from 6 April 2027, with a third wave dropping the threshold to £20,000 from 6 April 2028
Letting agents can file quarterly HMRC returns on a landlord's behalf - but only if registered with HMRC and formally authorised by the landlord, making this a decision to agree well in advance of each deadline
If your letting agent has not yet raised MTD compliance with you, you may wish to ask them directly whether they plan to handle your submissions - and if not, speak to an accountant who will
Two more MTD (Making Tax Digital) Income Tax deadlines are approaching, and letting agents across the UK face a direct business question. Will they register with HMRC to file quarterly returns for their landlord clients? The first wave already took effect on 6 April 2026 - but two further thresholds in 2027 and 2028 will bring hundreds of thousands more landlords into scope.
Who does MTD for Income Tax apply to?
MTD for ITSA (Income Tax Self Assessment) rolls out in three phases. From 6 April 2026, sole traders and landlords with qualifying income above £50,000 - based on their 2024/25 tax year - must keep digital records and submit quarterly updates to HMRC via compatible software, according to GOV.UK.
The second phase takes effect on 6 April 2027. Landlords with qualifying income above £30,000 in the 2025/26 tax year join the system at that point. HMRC estimates around 970,000 additional taxpayers will enter MTD from April 2027 (GOV.UK, July 2026). A third phase from 6 April 2028 drops the threshold to £20,000, based on 2026/27 income figures.
One critical detail: qualifying income is gross rental receipts before any expenses or deductions - not net profit. Landlords with large mortgages and modest net returns may still cross a threshold once gross rents are counted. This is particularly relevant for leveraged portfolios where expenses look significant on paper.
Can a letting agent handle MTD filings?
Yes - but only under specific conditions. A letting agent can act as a supporting agent for a landlord's MTD submissions, but the agent must first register with HMRC through an Agent Services Account. The landlord must then formally authorise them. Neither step can be skipped, according to Letting Agent Today (July 2026).
Propertymark has set up a dedicated MTD hub with guidance on compatible software and HMRC registration steps for agents who want to offer this service. The decision of whether to take it on is not a minor one. Acting for landlords on MTD means collecting income and expenditure data four times a year - not just at year-end. The first quarterly deadline for the 2026/27 tax year is 7 August 2026, covering the period from 6 April to 5 July 2026.
Agents who are not set up in time, or who choose not to offer this service, leave landlords to manage compliance alone. HMRC's points-based penalty system means that missed quarterly submissions accumulate towards financial penalties.
What should landlords do now?
Start by checking whether you are already in scope. If your gross rental income exceeded £50,000 in 2024/25, you should already be using MTD-compatible software and submitting quarterly updates. If you fall in the £30,000 to £50,000 band, the 6 April 2027 deadline applies to you. Practical tools to help you assess your position are available in the free resources section at Property Filter.
If your letting agent has not yet raised MTD, now is the time to ask. They may or may not plan to handle submissions - you need that answer before the deadline, not on the day. For landlords managing their own filings, MTD-compliant software is not optional: HMRC will not accept manual submissions.
Building MTD compliance into your operating structure now - rather than scrambling before each quarterly deadline - is the kind of approach covered in the business and systems guide at Property Filter. For broader context on how tax compliance fits within your overall property portfolio, the property investment strategies resource covers planning across all stages.
Key takeaways
6 April 2026: MTD mandatory for landlords with qualifying income over £50,000 (already in force, based on 2024/25 income)
6 April 2027: Threshold drops to £30,000 - an estimated 970,000 more taxpayers affected (GOV.UK)
6 April 2028: Threshold drops to £20,000
Qualifying income = gross receipts before expenses, not net profit
Letting agents can file on your behalf only if HMRC-registered and formally authorised by you
First quarterly deadline for 2026/27: 7 August 2026
Two more MTD (Making Tax Digital) Income Tax deadlines are approaching, and letting agents across the UK face a direct business question. Will they register with HMRC to file quarterly returns for their landlord clients? The first wave already took effect on 6 April 2026 - but two further thresholds in 2027 and 2028 will bring hundreds of thousands more landlords into scope.
Who does MTD for Income Tax apply to?
MTD for ITSA (Income Tax Self Assessment) rolls out in three phases. From 6 April 2026, sole traders and landlords with qualifying income above £50,000 - based on their 2024/25 tax year - must keep digital records and submit quarterly updates to HMRC via compatible software, according to GOV.UK.
The second phase takes effect on 6 April 2027. Landlords with qualifying income above £30,000 in the 2025/26 tax year join the system at that point. HMRC estimates around 970,000 additional taxpayers will enter MTD from April 2027 (GOV.UK, July 2026). A third phase from 6 April 2028 drops the threshold to £20,000, based on 2026/27 income figures.
One critical detail: qualifying income is gross rental receipts before any expenses or deductions - not net profit. Landlords with large mortgages and modest net returns may still cross a threshold once gross rents are counted. This is particularly relevant for leveraged portfolios where expenses look significant on paper.
Can a letting agent handle MTD filings?
Yes - but only under specific conditions. A letting agent can act as a supporting agent for a landlord's MTD submissions, but the agent must first register with HMRC through an Agent Services Account. The landlord must then formally authorise them. Neither step can be skipped, according to Letting Agent Today (July 2026).
Propertymark has set up a dedicated MTD hub with guidance on compatible software and HMRC registration steps for agents who want to offer this service. The decision of whether to take it on is not a minor one. Acting for landlords on MTD means collecting income and expenditure data four times a year - not just at year-end. The first quarterly deadline for the 2026/27 tax year is 7 August 2026, covering the period from 6 April to 5 July 2026.
Agents who are not set up in time, or who choose not to offer this service, leave landlords to manage compliance alone. HMRC's points-based penalty system means that missed quarterly submissions accumulate towards financial penalties.
What should landlords do now?
Start by checking whether you are already in scope. If your gross rental income exceeded £50,000 in 2024/25, you should already be using MTD-compatible software and submitting quarterly updates. If you fall in the £30,000 to £50,000 band, the 6 April 2027 deadline applies to you. Practical tools to help you assess your position are available in the free resources section at Property Filter.
If your letting agent has not yet raised MTD, now is the time to ask. They may or may not plan to handle submissions - you need that answer before the deadline, not on the day. For landlords managing their own filings, MTD-compliant software is not optional: HMRC will not accept manual submissions.
Building MTD compliance into your operating structure now - rather than scrambling before each quarterly deadline - is the kind of approach covered in the business and systems guide at Property Filter. For broader context on how tax compliance fits within your overall property portfolio, the property investment strategies resource covers planning across all stages.
Key takeaways
6 April 2026: MTD mandatory for landlords with qualifying income over £50,000 (already in force, based on 2024/25 income)
6 April 2027: Threshold drops to £30,000 - an estimated 970,000 more taxpayers affected (GOV.UK)
6 April 2028: Threshold drops to £20,000
Qualifying income = gross receipts before expenses, not net profit
Letting agents can file on your behalf only if HMRC-registered and formally authorised by you
First quarterly deadline for 2026/27: 7 August 2026
Frequently asked questions
Frequently asked questions
What is qualifying income for MTD purposes?
Can my letting agent submit my MTD returns?
What are the quarterly submission deadlines for 2026/27?
What happens if I miss a quarterly MTD submission?
Does MTD for Income Tax apply across the whole of the UK?
