Making Tax Digital for Landlords

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Ad - Horton and Garton explains the significant change to the tax system affecting many landlords

Making Tax Digital for Landlords

In April 2026, a significant change to the tax system will begin to affect many landlords across Chiswick and West London.

What is changing in April 2026

Making Tax Digital for Income Tax will replace the familiar annual Self Assessment process with a new system built around digital record keeping and quarterly reporting.

While it has been discussed for some time, the start date is now close enough that landlords should be reviewing what it means in practical terms.

The reform is being introduced in stages. From 6 April 2026, it will apply to landlords and sole traders with qualifying income above £50,000. That threshold falls to £30,000 in 2027 and £20,000 in 2028.

Qualifying income refers to gross income from property and self-employment combined, so some landlords who consider themselves “small scale” may still fall within scope.

We’ve shared a more detailed update on Making Tax Digital for Landlords in our latest blog.

Who will be affected

For those affected, the shift is operational rather than purely financial. Instead of collating figures once a year and submitting a single return, landlords will be required to keep digital records and send quarterly updates to HMRC using compatible software.

An end-of-year final declaration will then replace the traditional Self Assessment submission.

What quarterly reporting actually means

Importantly, quarterly reporting does not mean quarterly tax payments. Payment deadlines remain aligned with the current system, including the January and July dates for those who make payments on account. The change is about how information is submitted, not when tax is due.

Penalties and compliance expectations

HMRC has confirmed that landlords mandated into the system from April 2026 will not receive penalty points for late quarterly updates during the first 12 months, recognising that many will be adjusting to new processes.

However, other obligations remain enforceable, and submissions must be made through approved software. Digital administration is no longer optional.

What this means for West London landlords

For Chiswick landlords already navigating evolving EPC requirements, compliance standards and ongoing cost pressures, this represents another structural adjustment.

It is unlikely to trigger immediate portfolio decisions on its own, but it will reward those who treat record keeping and reporting as part of a disciplined operating model rather than a year-end exercise.

Practical next steps

The most sensible approach now is early preparation. Reviewing income levels, speaking with an accountant about software choices and responsibilities, and ensuring bookkeeping is orderly will prevent unnecessary friction when the first reporting quarter arrives.

In practice, the disruption is far greater for those who leave systems until the last minute.

Making Tax Digital is part of a broader direction of travel: greater transparency, more frequent reporting and tighter compliance across the private rented sector. For landlords operating in W4 and the surrounding areas, the theme is clear - forward planning consistently proves less costly than reactive adjustment.

We have published a detailed guide explaining who is affected, how the quarterly reporting system works, the key deadlines, and how to avoid unnecessary penalties.

To read the full update and understand how these changes may apply to you, visit our website here.

Please note this overview is for general information only and should not be treated as tax advice.

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February 27, 2026