Record Interest in Making Tax Digital as Deadline Approaches

Google search activity for the term “Making Tax Digital” has reached an all-time high in the UK, with a 614% increase recorded between December 2025 and February 2026. This surge comes as landlords prepare for the new digital tax reporting obligations coming into force in April 2026. According to research by Censuswide, commissioned by the software platform Coconut, interest peaked on 10 February 2026, indicating heightened awareness and urgency among landlords and agents.

New Digital Reporting Requirements for Landlords

The Making Tax Digital scheme will require landlords with rental income exceeding £50,000 to maintain digital records and submit quarterly updates to HM Revenue & Customs (HMRC) using approved MTD-compliant software from April 2026. Those with rental income between £30,000 and £50,000 will be brought into the scheme a year later, in April 2027. This phased approach aims to ease the transition but will still represent a significant change in how landlords manage their tax affairs.

Government Support and Tools for Compliance

In response to the growing interest and to assist landlords, the government has intensified its campaign around Making Tax Digital. It has published detailed guidance to help landlords select suitable software and released an online tool that asks tailored questions to recommend compatible MTD software options. This support aims to simplify compliance and reduce confusion among landlords and sole traders.

Concerns Over Costs and Benefits

Despite government assurances that Making Tax Digital will streamline tax processes, some experts remain sceptical about the benefits for landlords. Simon Misiewicz, an accountant quoted by Property118, has expressed doubts: “There’s no real benefit beyond maybe streamlining some of the work you already do. Does it help with tax returns and submissions? The truth is, I can’t see how.” He added that quarterly submissions do not accelerate tax payments or improve cash flow, as HMRC does not process these updates until the end of the tax year.

The government’s own Making Tax Digital impact assessment acknowledges that landlords earning over £50,000 could face an average transitional cost of £285 and an ongoing annual cost of £115. These additional expenses may affect landlords’ operational budgets and should be factored into financial planning.

What This Means for UK Landlords

Landlords in the private rented sector should begin preparing for the digital record-keeping and quarterly reporting requirements now to avoid last-minute difficulties. Familiarising themselves with approved software options and understanding the potential costs involved will be crucial steps. While the scheme aims to modernise tax administration, landlords should weigh the practical implications and seek professional advice if needed.

Looking Ahead

With the April 2026 deadline fast approaching, the spike in online searches highlights landlords’ need for clarity and support. The government’s enhanced guidance and digital tools are positive steps, but landlords must remain vigilant to ensure compliance and manage any additional costs effectively.

Suggested internal link anchors

• Making Tax Digital
• landlord tax obligations
• digital record keeping
• HMRC tax reporting
• MTD-compliant software
• landlord expenses
• private rented sector compliance
• tax deadlines for landlords
• quarterly tax submissions
• landlord financial planning

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/