MTD quarterly reporting for landlords becomes mandatory from 6 April 2026 for property investors with gross qualifying income above £50,000 (the MTD-for-ITSA threshold from 6 April 2026, falling to £30,000 from 6 April 2027 and £20,000 from 6 April 2028). This means submitting quarterly updates to HMRC instead of filing just one annual return.

The quarterly submission process replaces the traditional approach where landlords only reported property income once a year through their Self Assessment. This guide explains exactly how MTD quarterly reporting works and what you need to do.

What Is MTD Quarterly Reporting for Landlords?

MTD quarterly reporting requires landlords to submit their property income and expense data to HMRC four times a year. Each quarterly submission landlord must complete covers a three-month period of their business.

The system applies to individual landlords, partnerships, and trustees with UK property income. It does not apply to companies — they continue using Corporation Tax returns.

Key requirements include:

  • Use MTD-compatible accounting software
  • Keep digital records of all property income and expenses
  • Submit quarterly updates by the statutory deadline after each period end (7 August, 7 November, 7 February, 7 May for the standard tax year)
  • Complete an annual End of Period Statement (EOPS)

For landlords already familiar with Making Tax Digital requirements, quarterly reporting is the operational heart of the new system.

MTD Quarterly Deadlines and Submission Process

MTD quarterly deadlines depend on your accounting period. Most landlords use the standard tax year (6 April to 5 April), but you can choose different quarterly periods if it suits your business better.

Standard Tax Year Quarterly Deadlines

If you follow the tax year:

  • Q1 (6 Apr - 5 Jul): Submit by 7 August
  • Q2 (6 Jul - 5 Oct): Submit by 7 November
  • Q3 (6 Oct - 5 Jan): Submit by 7 February
  • Q4 (6 Jan - 5 Apr): Submit by 7 May

Alternative Quarterly Periods

You can choose calendar quarters (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec) or any other three-month periods. The statutory submission deadline still applies; verify the corresponding gov.uk-published date for your chosen period basis before relying on alternative quarter dates.

For example, calendar quarter deadlines would be:

  • Q1 (Jan-Mar): Submit by 30 April
  • Q2 (Apr-Jun): Submit by 31 July
  • Q3 (Jul-Sep): Submit by 31 October
  • Q4 (Oct-Dec): Submit by 31 January

Step-by-Step Submission Process

Step 1: Set Up Your MTD-Compatible Software
Choose accounting software from HMRC's approved list. Popular options for landlords include Xero, QuickBooks, FreeAgent, and specialist property software like Arthur Online or Landlord Vision. Your software must connect to HMRC's systems via API, store records digitally, calculate totals automatically, and submit returns electronically.

Step 2: Record All Income and Expenses
Throughout each quarter, record every property transaction digitally. This includes:

  • Income: Rental payments received, deposits retained, insurance payouts, other property-related income.
  • Expenses: Mortgage interest payments, repairs and maintenance, agent fees, insurance premiums, professional fees, and all other allowable landlord expenses.

Step 3: Prepare and Submit Your Quarterly Update
Before the submission deadline, review your quarterly figures for completeness, accuracy, and correct categorisation. Most MTD software automates the submission process: it generates the quarterly summary in HMRC's format, allows you to review totals, and then authorises electronic sending to HMRC. You will receive a confirmation receipt. The submission includes summary figures only — not every individual transaction.

Step 4: Keep Submission Records
Store copies of each quarterly submission and HMRC's confirmation receipts for your records and potential future queries.

What Information Goes in Each Quarterly Submission

Each MTD quarterly reporting submission includes summary figures for the period:

  • Income Summary: Total rental income received, other property business income, and income from different property types (if applicable).
  • Expense Summary: Total allowable expenses by category, mortgage interest (subject to Section 24 restrictions), and capital allowances claimed.
  • Adjustments and Balances: Brought forward losses, prior period adjustments, and other relevant adjustments.

The system calculates your quarterly profit or loss automatically, but remember this is not your final tax liability — that comes after your annual End of Period Statement.

End of Period Statement (EOPS)

After submitting all four quarterly updates, you must complete an End of Period Statement by 31 January following the tax year end.

The EOPS allows you to:

  • Make final adjustments to your annual figures
  • Claim additional reliefs or allowances
  • Finalise your property business profit for the year
  • Calculate your actual tax liability

Think of quarterly submissions as regular progress reports, while the EOPS is your final annual account.

MTD Quarterly Reporting vs Traditional Self Assessment

The shift to quarterly submission landlord requirements changes the annual rhythm of property tax compliance.

Old System (Pre-April 2026)

  • Keep records throughout the year
  • Complete property pages in Self Assessment by 31 January
  • Pay any tax due by 31 January

New MTD System (From April 2026)

  • Submit quarterly updates by the statutory deadline after each period end (7 August, 7 November, 7 February, 7 May for the standard tax year)
  • Complete End of Period Statement by 31 January
  • Continue making payments on account as required

The new system spreads compliance work throughout the year rather than concentrating it in the January deadline period.

Penalties for Late Submissions

HMRC applies penalties for late quarterly submissions:

Late Submission Penalties

  • 1-3 months late: Warning letter (no penalty)
  • Over 3 months late: £200 penalty
  • Over 6 months late: Additional £200 penalty
  • Over 12 months late: Further penalties up to £400

Reasonable Excuse Defence

You can appeal penalties if you have a reasonable excuse, such as serious illness, software or system failures, fire, flood, or theft affecting your records, or other exceptional circumstances. Technical problems with your accounting software may qualify, but you need evidence of the issue and attempts to resolve it.

Special Situations and Exceptions

Property Partnerships and Joint Ownership

Partnerships submit one set of quarterly returns covering all partners' combined property income. Individual partners receive their share of profits through the partnership return. For joint property ownership, owners can elect to submit separate returns for their share of income, or one owner can submit for both (with the other's consent).

Non-Resident Landlords

Non-resident landlords with UK qualifying income over £50,000 (the MTD-for-ITSA threshold from 6 April 2026, falling to £30,000 from 6 April 2027 and £20,000 from 6 April 2028) must also comply with MTD quarterly reporting. This works alongside existing NRL scheme requirements.

Mixed Property Businesses

If you have both UK and overseas property, or commercial and residential property, you may need separate quarterly submissions for each business type.

Preparing for and Getting Help with MTD

Start preparing now, even if you have until April 2026. Many landlords find quarterly submissions more complex than expected, particularly in the first year.

Before April 2026

  • Research and trial accounting software options
  • Digitise existing paper records
  • Set up efficient systems for recording transactions
  • Consider whether to change your accounting periods
  • Plan your approach to quarterly submissions

From April 2026

  • Register for MTD with HMRC
  • Complete your first quarterly submission by the deadline
  • Establish a routine for ongoing compliance
  • Monitor for any system changes or updates

Common challenges include choosing the right software, setting up periods, categorising expenses correctly, and managing multiple property types. A specialist property accountant can handle the entire MTD process, from software setup to submissions and annual finalisation. Professional support typically costs less than potential penalties and ensures compliance from day one.

MTD quarterly reporting represents a significant change in how landlords manage tax compliance. The key to success is preparation, good systems, and staying on top of quarterly deadlines throughout the year.