Propertymark has warned that a wider group of landlords will be pulled into Making Tax Digital for Income Tax from April 2027, with those earning more than £30,000 from property and self-employment set to join the new reporting system a year after the first wave.
The trade body said landlords already above the £50,000 threshold should now be using compatible software, while the next phase will catch many smaller operators who may still assume quarterly reporting is a problem for larger portfolios only. A further expansion to those earning more than £20,000 is due from April 2028.
For landlords, the latest warning matters because the practical burden does not start with the filing date. It starts with record-keeping, software choice and deciding who will handle submissions. Those who leave the change until HMRC writes to them could find themselves rushing through the same compliance scramble seen ahead of this year’s first deadline.
April 2027 will widen the landlord reporting net
In guidance published this week, Propertymark said landlords and sole traders with qualifying income above £50,000 should already be inside the new system. It added that the threshold will fall to £30,000 from 6 April 2027 and to £20,000 from 6 April 2028.
That means landlords who were outside the first phase may not stay outside it for long. Propertymark also said landlords remain responsible for checking whether the rules apply even if they do not receive a letter from HMRC.
Residential Landlord has already covered how HMRC’s tax adviser rules may leave landlords scrambling from May and why Making Tax Digital is forcing many accidental landlords to become more organised operators. The latest Propertymark warning sharpens that point by showing the compliance net is still widening rather than settling down.
Landlords can check the latest thresholds and rollout dates in Propertymark’s updated Making Tax Digital guidance.
Landlords need systems in place before HMRC letters arrive
Propertymark said agents now need to decide whether they will handle reporting for landlord clients, while affected taxpayers must use compatible software rather than paper records or ordinary manual processes. For self-managing landlords, that raises a simple question: whether to build a digital record system now or pay for support later.
The main risk is not confusion over the headline policy. It is drift. Many landlords with one or two properties may assume they have time, especially if income fluctuates around the threshold. But once the rules apply, quarterly updates, digital categorisation of income and expenses, and end-of-period adjustments all have to be in place.
There is also a cost angle. Software subscriptions, accountant support and admin time may look modest in isolation, but they add to the compliance stack landlords are already carrying after the Renters’ Rights Act and EPC pressure.
Opinion
Making Tax Digital is no longer a future reform for landlords. It is a live operating cost, and the 2027 threshold drop means the next squeeze will hit many people who still think they are too small to worry. HMRC may call this modernisation, but for smaller landlords it looks more like another push towards professionalisation or exit.
