MTD quarterly reporting for landlords becomes mandatory from 6 April 2026 for property investors with gross rental income over £10,000. 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 within one month of each period end
- 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 for Landlords
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 5 August
- Q2 (6 Jul - 5 Oct): Submit by 5 November
- Q3 (6 Oct - 5 Jan): Submit by 5 February
- Q4 (6 Jan - 5 Apr): Submit by 5 May
Alternative Quarterly Periods
You can choose calendar quarters (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec) or any other three-month periods. The one-month submission deadline still applies.
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 MTD Quarterly 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
- 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
- All other allowable landlord expenses
Step 3: Prepare Your Quarterly Data
Before the submission deadline, review your quarterly figures. Your software should automatically calculate totals, but check for:
- Completeness — all transactions recorded
- Accuracy — amounts and dates correct
- Categorisation — expenses in the right categories
- Supporting evidence — receipts and invoices stored
Step 4: Submit Your Quarterly Update
Most MTD software automates the submission process:
1. Generate the quarterly summary: Your software creates the required data in HMRC's format
2. Review the submission: Check totals and ensure everything looks correct
3. Authorise and send: Submit electronically to HMRC
4. Receive confirmation: HMRC sends a submission receipt
The quarterly submission includes summary figures only — not every individual transaction. HMRC may request detailed records during compliance checks.
Step 5: Keep Submission Records
Store copies of each quarterly submission and HMRC's confirmation receipts. You need these for your records and potential future queries.
What Information Goes in Each Quarterly Submission
Each MTD quarterly reporting submission includes:
Income Summary
- Total rental income received in the quarter
- Other property business income
- Income from different property types (if applicable)
Expense Summary
- Total allowable expenses by category
- Mortgage interest (subject to Section 24 restrictions)
- Capital allowances claimed
Adjustments and Balances
- Brought forward losses
- Prior period adjustments
- 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 within one month of each period end
- 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 MTD Quarterly 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
- 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
Partnerships submit one set of quarterly returns covering all partners' combined property income. Individual partners receive their share of profits through the partnership return.
Joint Property Ownership
Joint 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 property income over £10,000 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.
Getting Professional Help with MTD Quarterly Reporting
Many landlords find quarterly submissions more complex than expected, particularly in the first year. Common challenges include:
- Choosing the right accounting software
- Setting up quarterly accounting periods
- Categorising expenses correctly
- Managing multiple property types
- Coordinating with existing Self Assessment obligations
A specialist property accountant can handle the entire MTD process, from software setup to quarterly submissions and annual finalisation.
Professional support typically costs less than potential penalties and ensures compliance from day one. Consider getting help if you have a complex portfolio, limited time, or want peace of mind about meeting all requirements.
Preparing for MTD Quarterly Reporting
Start preparing now, even if you have until April 2026:
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
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.