MTD starts 6 April - Act Now
Received HMRC's MTD Letter? We'll Handle It.
HMRC is writing to 864,000 landlords and sole traders. If your qualifying income exceeded £50,000 in 2024/25, you must comply with Making Tax Digital from April 2026. UKPA takes care of your MTD setup, quarterly submissions, year-end returns and full compliance — so you don't have to.
Whether you're a landlord, self-employed or both, UKPA manages everything from digital record-keeping to HMRC filing on your behalf.
How UK Property Accountants Help
MTD for Landlords Expertise
Our property accountants specialise in landlord tax and stay fully up to date with MTD rules, keeping you aligned with HMRC guidance always.
Tailored Services
We tailor our MTD ITSA service to your needs, from registration and software setup to recordkeeping, quarterly updates, and final declarations.
Unmatched Property Tax Focus
We apply every MTD rule and allowance with property expertise, from mortgage interest splits to improvements and joint ownership.
What Landlords Are Saying
I received HMRC's MTD letter and had no idea where to start. UKPA set everything up for me, explained exactly what was changing and now they will handle my quarterly submissions. I don't have to think about MTD at all — they take care of the lot.
David R.
Landlord, Manchester
What HMRC's Letter Actually Means—And What You Need to Do
HMRC's MTD letter confirms you are in scope for Making Tax Digital for Income Tax from 6 April 2026. If your combined self-employment and property income exceeded £50,000 in your 2024/25 tax return, this applies to you. Here is what changes and what action you must take.
Are You a Landlord Who Received an MTD Letter from HMRC? Read our article on what to do next.
Instead of one annual Self Assessment, you must now submit quarterly updates to HMRC summarising your income and expenses. These are not full tax returns — they are light-touch summaries — but they must be submitted on time using MTD-compatible software.
At the end of the tax year, you must submit a Final Declaration through MTD software by 31 January the following year. This replaces the current Self Assessment tax return process for those in MTD.
HMRC is replacing the old £100 late filing penalty with an additive points system. Each late submission earns a penalty point. Once you reach four points, a £200 fine is triggered. For 2026/27 only, there is a soft landing — no penalty points for late quarterly updates. However, penalty points do apply for a late year-end return even in 2026/27, and the soft landing does not apply to those joining from April 2027 onward.
There is no soft landing for late payments. From April 2026, if your tax payment is more than 30 days late (15 days from April 2027), penalties are applied. From April 2027, the penalty rate increases from 3% to 4%.
HMRC's letter instructs you to sign up for Making Tax Digital for Income Tax. If you have an accountant or tax agent, they can do this on your behalf through their Agent Services Account. UKPA handles the entire sign-up process for you.
You Shouldn't Have to Become a Tax Software Expert Just Because HMRC Sent You a Letter
You’ve received the MTD letter and know changes are coming, but software choices, quarterly deadlines, and penalty worries can feel overwhelming. UKPA handles everything—from setup to quarterly and year-end filings—so you stay compliant without changing how you work.
The Challenge (Without UKPA)
The Solution (With UKPA)
Ignoring HMRC's MTD Mandation Letter Won't Make MTD Go Away
Making Tax Digital is not optional. If your qualifying income exceeded £50,000 in 2024/25, you are legally required to comply from 6 April 2026. HMRC will not send a second reminder. Here is what happens if you do nothing:
From the 2026/27 tax year, the current HMRC Online Tax Return system and paper filing will no longer be accepted for those in scope. If you are not set up on MTD-compatible software, you will have no way to file your return.
Every late quarterly submission earns a penalty point. Once you reach four points, HMRC issues a £200 fine — and it keeps applying for every subsequent late submission until you reset your points through a period of full compliance. While 2026/27 has a soft landing for quarterly updates, your year-end return carries full penalties from day one.
There is no soft landing for late payments. From April 2026, if your tax payment is more than 30 days late, penalties are charged. From April 2027, this tightens to 15 days and the rate increases from 3% to 4%.
Even if you try to skip the quarterly updates and just file your year-end return, HMRC will not accept it. All quarterly updates must be submitted before your Final Declaration can be filed. Leaving everything to January means you are filing five submissions at once under pressure — with penalty exposure on each.
Any unpaid tax attracts interest from the due date. This runs alongside penalties, not instead of them. The longer you delay, the more it costs.
Accountants who are already managing MTD clients will not have capacity to take on new clients at the last minute. The earlier you act, the more support is available.
The Bottom Line - The cost of not acting is far greater than the cost of getting set up now. UKPA can have you fully compliant in days — not weeks.
Our Complete MTD Service — From Setup to Submission
We register you for MTD for Income Tax, set you up for Agent Services Account authorisation and help you configure HMRC-recognised software on your behalf.
The MTD Timeline — Every Deadline That Matters
6 April 2026 — MTD Goes Live
Digital record-keeping begins for landlords and sole traders with qualifying income over £50,000. You must be registered and using recognised software from this date.
7 August 2026 — First Quarterly Update Due
Covers the period 6 April – 5 July 2026. This is your first submission to HMRC under MTD. No penalty points for late filing in 2026/27, but the update must be submitted before your year-end return.
31 January 2028 — First MTD Year-End Return Due
Your Final Declaration for 2026/27 must be filed by this date. Late filing penalty points DO apply to this return — even in the soft-landing year.
April 2027 — £30,000 Threshold Joins
Those with qualifying income over £30,000 enter MTD. No soft landing — full penalty points apply from day one.
April 2028 — £20,000 Threshold Joins
The threshold drops again. Late payment penalties also increase from 3% to 4%. RentalBux offers a free tier for single-property landlords until this date.
Built for Landlords and Sole Traders Who Want MTD Handled for Them
UKPA's MTD compliance service is designed for anyone who has received HMRC's MTD letter and wants a professional to manage the entire process.
Landlords with Rental Income Over £50,000
You own one or more rental properties and your gross rental income exceeds £50,000. You've received the letter and need someone to handle quarterly submissions and year-end filing.
Sole Traders Earning Over £50,000
You're self-employed and your gross trading income exceeds the threshold. You need MTD compliance but don't want to manage software and deadlines yourself.
Landlords Who Are Also Self-Employed
You earn both rental and self-employment income. Your combined income puts you in scope. You need both income streams reported correctly under MTD — UKPA handles both.
Joint Property Owners
You own property with a spouse, partner or family member. Each co-owner needs their own MTD submissions. UKPA manages the splits and files for all parties.
Landlords with Foreign Property
You own rental property overseas and need to report foreign rental income alongside UK property income. UKPA ensures correct reporting to HMRC for both.
Portfolio Landlords
You own multiple properties across different structures — sole ownership, joint ownership, residential, HMO, commercial. UKPA manages the complexity and keeps every property's income correctly reported.
Landlords Approaching the £30,000 and £20,000 Thresholds
You're not in scope yet but expect to be from April 2027 or April 2028. UKPA helps you prepare early so you're ready when your threshold arrives.
The Difference Between Doing It Yourself and Having UKPA Handle It
Feature
With UKPA
DIY (Self-Managed)
MTD Registration & Sign-Up | ||
Software Selection & Setup | ||
Digital Record-Keeping | ||
Quarterly Submissions | ||
Year-End Final Declaration | ||
Joint Ownership Splits | ||
Foreign Property Reporting | ||
Penalty Point Monitoring | ||
Time Investment | ||
Peace of Mind |
What Landlords Ask Us After Receiving HMRC's MTD Mandation Letter
We've answered the most common questions from landlords and sole traders who have received HMRC's Making Tax Digital letter.
You need to sign up for MTD for Income Tax, choose HMRC-recognised software for digital record-keeping and be ready to submit your first quarterly update by 7 August 2026. If you use UKPA, we handle and help you with the entire process - registration, software setup, quarterly filing and year-end returns.
You are not legally required to use an accountant, but MTD introduces four quarterly deadlines, digital record-keeping obligations and a new penalty system. Many landlords and sole traders choose professional support to avoid errors, missed deadlines and penalty points. UKPA manages everything on your behalf.
Yes. UKPA can submit quarterly updates and your year-end Final Declaration on your behalf through our Agent Services Account. You authorise us once and we handle all filings.
Each late submission earns a penalty point. Once you reach four points, HMRC issues a £200 fine. For 2026/27, there is a soft landing — no penalty points for late quarterly updates. However, your year-end return must still be filed on time or penalty points apply. From 2027/28, the soft landing is removed and all late submissions earn points immediately.
Late payment penalties are separate from submission penalties. From April 2026, if your tax payment is more than 30 days late, a penalty is applied. From April 2027, this tightens to 15 days and the penalty rate increases from 3% to 4%. There is no soft landing for late payments.
HMRC requires separate quarterly updates for property income and self-employment income. UKPA handles both income streams under one service. We use RentalBux to track both and submit all returns from a single platform.
Each co-owner must submit their own MTD returns showing their share of the rental income and expenses. UKPA sets up the ownership percentages in RentalBux and manages submissions for both parties. Self-employment income remains separate for each owner.
Yes. UKPA manages UK property income, foreign property income and self-employment income under one service. RentalBux tracks each income stream separately to ensure correct reporting to HMRC.
As a UKPA client, we provide you with a RentalBux licence — our in-house HMRC-recognised MTD software. You do not need to choose, purchase or set up separate software. We configure everything for you.
HMRC bases the £50,000 threshold on your combined gross self-employment and property income from your 2024/25 tax return, before expenses or deductions. If you believe there is an error, UKPA can review your position and advise on exemptions or digital exclusion applications where applicable.
Most clients are fully set up within a few days. We handle registration, software configuration and record-keeping setup. You can book a free consultation today and we will review your letter and explain exactly what steps are needed.
Don't Wait Until April.
HMRC's MTD mandation letter is your signal. Let UKPA handle your MTD compliance so you can focus on your properties and your business. The sooner you start, the smoother the transition.
