What you should do if you missed Making Tax Digital deadline
Summary
HMRC says more than 400,000 sole traders, landlords and small business owners missed the first Making Tax Digital for Income Tax deadline. The article explains the current reporting requirements, the soft-landing period for late quarterly updates in 2026/27, and the planned expansion of the regime to lower income thresholds from next year.
Why it matters
Residential property surveyors who receive rental income or operate as landlords may be within scope of Making Tax Digital for Income Tax and need to ensure their record-keeping and submissions are compliant. The article is relevant as it highlights a live tax compliance change affecting property income reporting and future penalties.
Key points
- More than 864,000 taxpayers were due to file the first quarterly update, but only 436,000 did so on time.
- MTD for Income Tax applies to qualifying income from property rental and sole trade income above £50,000 in 2024/25.
- HMRC will begin signing up those required for the 2026/27 tax year from September.
- A one-year soft landing applies to late quarterly updates in 2026/27, but not to late annual final declarations.
- From the following year, the threshold will extend to qualifying income of £30,000 and above in 2025/26.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
