Letting agents and landlords are being urged to act immediately as the biggest change to the Self Assessment tax system in almost 30 years comes into force in just two weeks.
Making Tax Digital (MTD) for Income Tax starts on 6 April 2026, requiring those earning more than £50,000 to keep digital records and submit quarterly updates to HMRC using compatible software instead of filing a single annual return.
Propertymark says the changes will affect around 125,000 people across the property sector, including an estimated 118,000 landlords and thousands of sole traders working in estate agency, lettings and property management.
Under the new rules, the first reporting period will run from 6 April to 5 July 2026, with the first quarterly submission due by 7 August. HMRC has confirmed penalties for late quarterly updates will not apply during the first year, but a new points-based system will be introduced later and late annual returns will still be fined.
CAUGHT OUT
More than 100,000 taxpayers have already registered through the voluntary testing programme but Propertymark says many agents and landlords have yet to prepare and risk being caught out once the system goes live.
Nathan Emerson (main picture, inset), CEO of Propertymark, says: “Making Tax Digital represents one of the most significant changes to the tax system in a generation.
“Agents have a key role to play.”
“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.”
Propertymark has produced a range of resources available to support members, including detailed guidance, key dates, and practical tools via its Knowledge Hub.
The organisation will also host a joint webinar with HMRC on 27 April 2026, aimed at helping agents and landlords better understand how the new rules operate in practice. Members can register HERE.
