Fewer than half of the highest-earning landlords believe they are already using Making Tax Digital for landlords, even though the requirement has applied to them since April, according to new research from property management platform August.
The August Landlord Survey 2026 gathered responses from 276 landlords across the UK in September. It asked when they thought they had to start using MTD, and separately asked for their gross income from property and self-employment, which is the basis HMRC uses to set the start date. Comparing the two showed that only 35% of landlords named the start date that applies to them.
Among landlords reporting income of £50,000 or more, who have had to keep digital records and file quarterly updates since April 2026, 48% said they were already in MTD. A further 44% believed they start later or fall below the thresholds, and 8% did not know.
The survey went out by email to a distribution list of more than 5,000 UK landlords, through August’s LinkedIn and X accounts, and via the East Midlands Property Owners to its members. Respondents self-selected, so the sample over-represents larger, limited-company and working-age landlords compared with the government’s English Private Landlord Survey 2024.
Start dates for Making Tax Digital for landlords remain unclear
The picture is worse for the next wave. Landlords with income between £30,000 and £49,999 must join in April 2027, but only 28% of them knew it. Nearly two-thirds (64%) named a different date, many believing they were already in, and the rest did not know. In the £20,000 to £29,999 band, due to join in April 2028, 11% named the right year and 36% did not know.
Landlords in scope also expect a real cost in time. Three-quarters (75%) anticipate that MTD will add at least four hours of work every quarter, and 34% expect it to take more than a day. Only 6% expect it to take less than an hour. Among those already in, 83% said they submitted their first quarterly update on time, while 12% submitted late.
Landlords are split on how they keep the digital records that Making Tax Digital for landlords requires. Some 28% leave it entirely to their accountant, 26% use general accounting software such as Xero or QuickBooks, 25% use dedicated landlord software and 14% run a spreadsheet with bridging software. Those who use a letting agent lean heavily on their accountant (42%), while self-managing landlords are far more likely to do it themselves.
“The scale of the gap surprised us,” said Richard Samuel, chief executive of August. “These are not disengaged landlords.
"Three-quarters of our respondents own five or more properties and most have been letting for over a decade. If half of them don’t know they are already inside the regime, the position among the sector’s smaller landlords is likely to be worse.
"The 2027 wave is six months away and brings in a far larger group. HMRC, accountants and software providers have a short window to make sure landlords know when their obligations start and what a quarterly update actually involves.”
