Propertymark has issued an urgent warning to letting agents and landlords, urging immediate action with just 14 days until Making Tax Digital (MTD) for Income Tax comes into force on 6 April 2026.
The change, introduced by HM Revenue & Customs, represents the most significant overhaul of the Self Assessment system since 1997. Around 125,000 individuals across the UK property sector are affected, including an estimated 118,000 landlords and thousands of sole traders working in real estate.
What the new rules require
From April, anyone earning over £50,000 must keep digital records and submit quarterly updates to HMRC using compatible software. This replaces the traditional annual Self Assessment tax return.
The first reporting period runs from 6 April to 5 July 2026, with submissions due by 7 August 2026. Key steps landlords and agents should take now include:
- Reviewing HMRC's official MTD guidance
- Selecting compatible Making Tax Digital software
- Putting digital record-keeping processes in place before the start date
Progress so far, and what remains to be done
More than 100,000 taxpayers have already registered, and over 15,000 quarterly updates have been submitted through a voluntary testing programme. Despite that progress, Propertymark says a significant number of those in the property sector have yet to act, with the window now extremely narrow.
HMRC has confirmed it will not issue penalties for late quarterly updates during the 2026 to 2027 tax year as the new system beds in. However, a points-based penalty regime will apply to missed deadlines in subsequent years, and late annual tax returns will continue to attract penalties regardless.
What this means for landlords and agents
"Making Tax Digital represents one of the most significant changes to the tax system in a generation," said Nathan Emerson, chief executive of Propertymark.
"Agents have a key role to play in supporting their clients through this transition, with guidance on timelines regarding selecting the right software, to embedding new reporting processes. With just days to go, there is now an urgent need for landlords and agents to ensure they are ready."
The professional body's warning reflects the scale of the administrative shift involved. Moving from a single annual return to four quarterly digital submissions requires not just software adoption but a change in how landlords manage their financial records throughout the year.
With the 6 April deadline now days away, those yet to begin their preparations are running out of time to act before the UK's property tax reporting landscape changes permanently.
Resources and guidance
Propertymark has produced a range of resources available to support members, including detailed guidance, key dates, and practical tools via its Knowledge Hub.
HMRC is urging anyone else in scope of Making Tax Digital for Income Tax to act now: read the guidance, choose software and sign up on GOV.UK. Those who genuinely cannot use digital tools can apply for an exemption.
