Sign-ups to Making Tax Digital (MTD) for Income Tax among taxpayers with UK property income rose by about 5% in the six weeks after the first quarterly deadline, according to Freedom of Information (FOI) data obtained by Landlord Studio.
HMRC figures show around 155,500 taxpayers with UK property income had signed up by 6 August 2026. That rose to around 163,400 by 21 September, an increase of around 7,900.
The FOI data also covers foreign property income and software uptake:
- Around 6,200 taxpayers with foreign property income had signed up by 6 August, rising to around 6,500 by 21 September, an increase of around 290 or about 5%.
- HMRC reported around 304,800 software authorisations linked to MTD-compatible software by 21 September, up from around 285,200 by 10 August. That is a rise of around 19,600, or about 7%.
The next quarterly deadline falls in November. From April 2027, MTD for Income Tax will extend to landlords and sole traders with qualifying income above £30,000, bringing more landlords into scope, and those who fail to comply may face penalties. Affected landlords must keep digital records and report income to HMRC every quarter, instead of reporting solely through an annual Self Assessment return.
“What stands out from these figures is how little sign-ups have moved since the first quarterly deadline,” said Logan Ransley, co-founder of Landlord Studio. “A rise of around 5% in six weeks suggests a slow trickle rather than a rush to catch up. With the next deadline in November, it looks like many landlords are still not prepared.
“This is only the start. From April next year, more landlords will be brought into MTD, and those who don’t comply could face penalties. Moving from once-a-year Self Assessment to digital records and quarterly reporting takes time to set up, so leaving it late is risky.
“The focus for landlords now should be on getting the right records, processes and software in place. Handled well, MTD can give landlords a clearer view of how their properties are performing throughout the year. These figures don’t tell us how many landlords will ultimately comply, but they do suggest the transition is still some way from complete.”
