Landlords Face April Deadline for Making Tax Digital Amidst Slow Registration Uptake

As the April 2026 deadline for Making Tax Digital (MTD) approaches, concerns are rising over the low rate of taxpayer registration, including landlords. Despite government assurances of support, less than 5% of those required to comply have signed up for the scheme, according to reports from March 16, 2026.

What is Making Tax Digital?

Under the MTD rules, landlords earning over £50,000 will be required to maintain digital records and submit quarterly updates to HM Revenue & Customs (HMRC) using MTD-compliant software, beginning in April 2026. The initiative aims to streamline tax processes and reduce errors.

Government Support Measures

In response to concerns about preparedness, the government has outlined several support measures. Labour MP Dan Tomlinson stated that these include targeted media campaigns, awareness letters, comprehensive guidance materials, and collaboration with the software industry to ensure a variety of compatible products are available at different price points. Free software options are also being offered for those with simpler tax affairs.

HMRC is also providing a dedicated team of trained MTD advisors and will offer tailored support options on its Self-Assessment and Agent helplines starting in April 2026. Additional support will be delivered through webinars, industry engagement, and targeted marketing activities.

Criticism of the Scheme

Despite the government’s claims that MTD will benefit landlords, some accountants remain skeptical. Simon Misiewicz, an accountant, has argued that there is “no real benefit” to the scheme, stating that HMRC does not utilize the quarterly returns until the conclude of the year and that there is no immediate cash-flow advantage.

Financial Implications for Landlords

The government’s own impact assessment acknowledges potential costs for landlords. Those earning £50,000 could face an average transitional cost of £285 and an additional annual cost of £115.

Key Dates

• March 8, 2026: Daylight Saving begins.
• March 17, 2026: St. Patrick’s Day.
• April 2026: Making Tax Digital for Income Tax comes into force.

Landlords are encouraged to register for MTD and explore the available support resources to ensure a smooth transition before the April 2026 deadline.