Quarterly MTD Returns for Landlords: What You Actually Need to Submit

A quarterly MTD return for a landlord is a cumulative summary of property income and expenses for the tax year to date, categorised under HMRC's standard property headings and submitted from compatible software. It is not a tax calculation, it creates no payment obligation, and it does not include adjustments, reliefs or claims. Making Tax Digital landlords 2026 obligations began on 6 April 2026 for anyone whose qualifying income exceeds £50,000, and the first update for the 2026/27 tax year fell due on 7 August 2026. Blue Tick Accountants, a Guildford-based UK tax advisory and accountancy practice, gets landlords filing correctly before the first year concessions expire. This article sets out what goes into a quarterly update, which landlords must file one, the deadlines and the final declaration, and how a full year fits together.

Key Takeaways

• A quarterly MTD update reports cumulative totals of property income and expenses by category for the tax year to date, not a three-month standalone figure and not a tax calculation.
• Digital tax records property income rules require every rent receipt and expense to be recorded digitally at transaction level, with the amount, date and category captured.
• Quarterly update deadlines for landlords are 7 August, 7 November, 7 February and 7 May, followed by a final declaration by 31 January after the tax year ends.
• Landlords with qualifying income above £50,000 have been mandated since 6 April 2026, with the threshold falling to £30,000 from April 2027 and £20,000 from April 2028, where qualifying income means gross rent before expenses added to any self-employment turnover.
• A UK property business and an overseas property business are separate businesses under MTD, so a landlord with both files two sets of quarterly updates.
• Residential mortgage interest is reported separately and relieved as a 20% tax reducer at the final declaration, not deducted as an expense in the quarterly figures.

What does a landlord actually submit in a quarterly MTD update?

A landlord submits cumulative totals of property income and allowable expenses for the tax year to date, split across HMRC's standard property categories, direct from MTD-compatible software. Nothing else is required, and nothing is payable.

The income side captures rents and other property income such as service charges recovered from tenants. The expense side uses set headings: rent, rates and insurance; property repairs and maintenance; loan interest and other financial costs; legal, management and other professional fees; costs of services provided including wages; travel costs; and other allowable property expenses.

Because updates are cumulative, each submission restates the position from 6 April rather than reporting a fresh three-month block. An error in the first quarter is corrected simply by submitting accurate cumulative figures in the second.

What deliberately does not appear is anything requiring judgement: capital allowances, the property allowance, private use restrictions, replacement of domestic items relief, or the finance cost tax reducer. Those are applied once, at the final declaration. For the full picture of how the regime works from registration onwards, see our guide to Making Tax Digital for landlords.

Which landlords must file Making Tax Digital updates in 2026/27?

Landlords with qualifying income above £50,000 are within Making Tax Digital for Income Tax for 2026/27. Qualifying income means gross rents before any expenses, so the test is met far more easily than a profit-based threshold would suggest.

Property and trading income are added together for the test. A landlord with £34,000 of gross rents and £19,000 of freelance turnover has qualifying income of £53,000 and is mandated, despite neither source reaching the threshold alone. The measure is taken from the last filed tax return, so 2026/27 mandation was determined by the 2024/25 figures. The threshold falls to £30,000 from April 2027 and to £20,000 from April 2028, and a landlord below the current threshold simply files a conventional self-assessment return by 31 January 2028.

Jointly owned property carries a lighter obligation. A joint owner can report income only in the quarterly updates and add the expense figures at the final declaration. An MTD ITSA landlord with an overseas property has a heavier one, because a UK property business and an overseas property business are separate businesses requiring separate submissions.

What are the deadlines, and what happens if one is missed?

The four quarterly deadlines for an MTD ITSA landlord are 7 August, 7 November, 7 February and 7 May, covering the periods ending 5 July, 5 October, 5 January and 5 April respectively. For 2026/27 the final declaration is due by 31 January 2028.

Landlords who prefer month ends can elect in software for calendar quarterly periods ending 30 June, 30 September, 31 December and 31 March, without changing the filing deadlines.

A missed quarterly update normally earns one penalty point, with a £200 penalty charged once four points have accumulated. HMRC has confirmed a soft landing for the first twelve months, so no points are issued for late quarterly updates during 2026/27. That concession is narrower than it appears: it does not extend to the final declaration, and it does not touch late payment penalties, which run at 3% of the outstanding tax after 15 days, a further 3% after 30 days, and 10% per annum from day 31. Payment dates are unchanged, with 31 January and 31 July remaining the payment on account dates.

Worked example: a landlord's full year of quarterly updates

A landlord with £62,000 of gross rents across four properties files four cumulative updates through 2026/27, reporting £62,000 of income and £17,400 of expenses by the fourth, then settles the actual tax position at the final declaration by 31 January 2028.

James lets four properties in Surrey producing £62,000 of gross rent, so his 2024/25 return put him above the £50,000 threshold and he was mandated from 6 April 2026. His first update, filed by 7 August 2026, reported cumulative rents of £15,500 and expenses of £4,200. His second, by 7 November, restated the year to date at £31,000 and £9,800. His third and fourth reached £46,500 and £13,100, then £62,000 and £17,400.

His £11,000 of residential mortgage interest sits outside that £17,400 expense figure. It is reported under loan interest and financial costs but relieved separately, as a basic rate tax reducer worth £2,200 applied at the final declaration.

The final declaration adds his employment income and claims replacement of domestic items relief on a £1,900 cooker and washing machine. His taxable property profit is £42,700, with the £2,200 reducer coming off the calculated liability rather than the profit.

What software and digital records does a landlord need?

Landlords within MTD must keep digital records of every property income and expense transaction and submit updates from software on HMRC's compatible list, with spreadsheets permitted only when linked through bridging software. Manual retyping of totals into a portal is not compliant.

The digital record must capture the amount, the date and the category of each transaction. Digital tax records property income requirements do not extend to scanning every invoice, though keeping digital copies alongside the entries makes an enquiry easier to handle.

Software choice comes down to portfolio size. A one or two property landlord is usually well served by a low cost MTD filing tool costing £60 to £150 a year, while a portfolio of five or more justifies full bookkeeping software with per-property profitability and tenancy tracking.

Frequently Asked Questions

What do I actually submit in an MTD quarterly update as a landlord?

You submit cumulative totals of property income and allowable expenses for the tax year to date, categorised under HMRC's standard property headings, from MTD-compatible software. No tax calculation is required, nothing becomes payable, and adjustments such as capital allowances and the finance cost tax reducer are left until the final declaration.

When are the MTD quarterly deadlines for landlords?

Quarterly updates are due on 7 August, 7 November, 7 February and 7 May, covering the periods ending 5 July, 5 October, 5 January and 5 April. The final declaration for the 2026/27 tax year is due by 31 January 2028. Landlords can elect for calendar quarters ending 30 June, 30 September, 31 December and 31 March without changing those filing dates.

Do I still have to file a self-assessment tax return under MTD?

The self-assessment return is replaced by a final declaration, submitted through MTD-compatible software by 31 January following the end of the tax year. The final declaration performs the same function: it brings together all income sources, applies reliefs and allowances, and produces the tax liability for the year.

How is the £50,000 MTD threshold calculated for a landlord?

Qualifying income is gross rental income before deducting any expenses, added to any self-employment turnover. A landlord with £53,000 of gross rents is mandated even if mortgage interest and running costs reduce the taxable profit to £15,000. The threshold is tested against the most recently filed tax return.

Can I still use a spreadsheet for my rental records under MTD?

Yes, provided bridging software creates a digital link between the spreadsheet and HMRC. The records themselves must be kept digitally at transaction level, showing the amount, date and category of each entry. What is not permitted is manually typing summary totals into an HMRC portal without a digital link.

How Blue Tick Can Help

Blue Tick Accountants runs quarterly MTD submissions for landlords across the UK, from confirming whether the £50,000 threshold is actually breached through to selecting software, setting up the property categories and filing each update on time. Where a portfolio spans joint ownership, overseas property or a mix of trading and rental income, the structure of the submissions matters as much as the figures in them. Head to our website and book a meeting now.

Conclusion

A quarterly MTD update is a far lighter document than most landlords expect: cumulative income and expense totals by category, submitted four times a year, with every judgement left to the final declaration. The real risk in 2026/27 is not the content of the updates but the habit, because the penalty soft landing ends after twelve months and the £30,000 threshold pulls a much larger group of landlords in from April 2027. Set the software and the filing rhythm up now, while mistakes are still free.

About the Author

This guide was written by Leon, founder of Blue Tick Accountants, a Guildford-based UK tax advisory and accountancy practice that helps landlords, limited company owners and the self-employed across the UK. It was last reviewed for the 2026/27 tax year.

This article is intended for general informational purposes only and does not constitute tax, legal, or financial advice. Tax rules are subject to change and their application will depend on your individual circumstances. You should always seek advice from a qualified professional before taking action. Blue Tick Accountants accepts no liability for decisions made on the basis of this content.

Related reading: MTD for Property Income: What Records Must You Keep Digitally?.