Making Tax Digital deadline approaching

Next Friday marks the first quarterly reporting deadline for landlords impacted by new Making Tax Digital (MTD) rules.

Those of you earning more than £50,000 a year from your property business and/or self-employment income now need to submit quarterly updates rather than just an annual return, with the first of these documents due for digital submission on 7th August.

What exactly is Making Tax Digital?

Making Tax Digital is a government initiative to modernise the tax system, requiring businesses to keep and submit records of their property income and allowable expenses digitally. 

If you fall under the remit of the scheme, instead of one annual return each January, you now need to: 

• Keep digital records of your rental income and expenses throughout the year. 
• Submit four quarterly updates to HMRC each tax year using Government-approved software. 
• File a final end-of-year declaration to confirm your totals. 

Your tax bill and payment schedule stay exactly the same. The difference is how and when you report the numbers to HMRC.

What do I need to do?

If you make £50,000 a year from your property business you should already be signed up for MTD – if you haven’t, you need to do that as soon as possible here.

You should also make sure your software is compatible with the system.

Options for NRLA members

• Option 1: PortfolioPro by NRLA. If you are already using Portfolio to manage your properties, you are ahead of most landlords. Portfolio includes MTD-ready digitised transactions, meaning your income and expenses are already being recorded in a format that feeds into quarterly submissions. Paired with Taxd for the actual HMRC filings, it gives you a complete picture in one place. 
• Option 2: Keep your spreadsheet and use bridging software. If you prefer to keep managing your records in a spreadsheet, you do not need to change how you work. Bridging software connects your existing records to HMRC and handles the quarterly submissions on your behalf. Taxd's bridging software does exactly this, starting from £6 per month, and has been built specifically for landlords. 

It makes sense to collate the information as you go along, but it is inevitable some people will be sign up now and pulling the report together from scratch – something we know often happens with annual returns. The process isn’t particularly onerous, but the first report is likely to be the most challenging, when it comes to careful categorising of expenditure and getting to grips with the new software.

It is also worth noting that the quarter 2 reporting has already started (running from 6^th July to 5^th October), with a 7^th November reporting deadline.

If and when will I be affected?

All landlords who earn more than £20,000 a year from their properties and pay tax via Self-Assessment will ultimately be affected, with the compliance dates depending on that income. 

From 2026: Landlords with an annual income of £50,000 or more in the 2024-2025 tax year must comply. 

From 2027: This is extended to landlords earning £30,000 or more in the 2025-2026 tax year. 

From 2028: The new rules apply to landlords with an income of £20,000 or more in the 2026-2027 tax year.

Join our webinar

We are running our next member webinar: ‘Filing Your First MTD Update: Get ready for the 7th August deadline’ next Monday, 3rd August.

This free webinar with Taxd and the NRLA will offer a step-by-step filing guide, walking you through exactly how to submit, what to include, and how to avoid the most common mistakes– and how to rectify them. It will run from 11am -11.45am and you can book your free place here.

More information

• To read our detailed Making Tax Digital guidance click here.
• Our award-winning Training Academy runs a Making Tax Digital course offering everything you need to know about the new system. For dates and to book click here.
• To watch our recent podcast answering some of the most common questions on Making Tax Digital click on the video below.