Landlords forced to file tax ‘updates’ 10 times under new HMRC digital self-assessment rollout
Nearly a million landlords and freelancers will have to report their taxes quarterly, rather than every year, from April under HMRC’s “Making Tax Digital” project.
The tax office said the scheme will make it easier for businesses to keep on top of their tax affairs and allow them to see real-time data on the health of their finances.
But residential landlord association iHowz warns the transition period involves 10 tax returns for many between now and the end of next year.
The new rules, which apply from April to landlords and self-employed workers who make more than £50,000, require four quarterly submissions as well as a year-end adjustment and a final declaration – all to be submitted via HMRC-approved third party software.
The first quarterly submission deadline is Aug 7, which covers finances from April 6 to July 5. Quarterly updates are then due in three-month periods, with the next deadline on Nov 7.
Landlords will still need to file two more years of taxes on the old system, with the deadline for the 2024-25 financial year looming on Jan 31 this year. The 2025-26 financial year will need to be filed by Jan 31 2027
Those who have set up buy-to-let limited companies must also file corporate tax returns once a year – meaning they have two extra returns to file between now and the end of 2027.
The scheme’s “soft landing period” means taxpayers won’t face penalties for late quarterly updates this year – but could be hit by the new points-based punishment system for late filing from April next year.
Landlords and self-employed workers who make more than £30,000 will join the scheme on April 6 2027, and those with a turnover of more than £20,000 will join on April 6 2028.
The scheme’s graduated implementation means HMRC must navigate several years of multiple overlapping filing schemes. So far, the Government has not indicated when or whether landlords who make less than £20,000 a year will be forced onto the programme.
It comes as key legislation in the Renters’ Rights Act is set to come in on May 1, which marks when Section 21 evictions will be outlawed in England, fixed-term tenancy contracts must be replaced by “rolling” contracts, and landlords must include clearer rules on pets.
Property income tax will also rise by two percentage points from April 2027 to 22pc, 42pc and 47pc for the basic, higher and additional rates respectively, adding to the list of changes landlords must prepare for.
Landlords have been quitting the market ahead of the increased red tape. One in three are considering exiting the market, according to property website Rightmove in November, and 65pc feel unsupported by the Government.
Mr Norris added: “If you’re not very careful this year, I can see people getting into a bit of a mess, twisting themselves into knots. We’ll certainly be encouraging people to finalise their self assessment earlier than they would otherwise.”
An HMRC spokesperson said: “Making Tax Digital customers will need to send us simple quarterly summaries of income and expenditure using compatible software. This can make the annual tax return less burdensome as the information will be pre-populated on their return.
“This means customers will gain a better view of the health of their business and tax liability.
“Quarterly updates are not tax returns – they are simple summaries of your income and expenses from sole trading and property, with no need for adjustments. MTD software will do much of the work.”
Matthew Dean
12th January 2026.
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