## New £1,000 Fine for Landlords Not Updating MTD Contact Details

The UK government has introduced a penalty of up to £1,000 for landlords who fail to update their digital contact details as required under the Making Tax Digital (MTD) initiative. This scheme, which came into effect in April, mandates landlords with rental income over £50,000 to maintain digital records and submit quarterly updates to HM Revenue & Customs (HMRC) using authorised MTD-compliant software.

The requirement to keep contact details current includes providing an email address or mobile phone number and ensuring these remain accurate. Failure to comply can now result in a significant financial penalty, a move that has sparked debate about its proportionality and impact on taxpayers.

## Concerns Over Penalty’s Fairness and Impact

During a recent Finance Bill debate, Shadow Economic Secretary Mark Garnier criticised the £1,000 fine as “unprecedented and disproportionate.” He highlighted that while it is reasonable to expect taxpayers to update their contact details, the severity of the penalty is concerning, especially as there is no equivalent fine for failing to update traditional postal addresses or other forms of contact.

Mr Garnier emphasised the risk that this penalty could disproportionately affect vulnerable individuals or those less familiar with digital processes. He urged the government to review the level of the fine and consider whether it is appropriate to introduce such a sanction.

## Government Response and Safeguards for Vulnerable Groups

Economic Secretary to the Treasury Lucy Rigby responded by assuring that the government will keep the issue under review. She acknowledged that older taxpayers may be more likely to experience digital exclusion and confirmed that safeguards will be in place to allow these groups to continue receiving paper communications.

The government’s impact assessment also clarifies that landlords unable to use digital tools will not be forced into the MTD scheme. Landlords can request exemption by contacting HMRC either by letter or phone. Additionally, landlords will not face fines for late filing during the first 12 months of the scheme, providing some initial leniency as they adapt to the new requirements.

## What This Means for UK Landlords

Landlords with rental income above £50,000 should ensure their digital contact details registered with HMRC are accurate and kept up to date to avoid penalties. Those who struggle with digital compliance have options to seek exemption or continue receiving paper communications under government safeguards.

It is important for landlords and letting agents to be aware of these changes and monitor any updates from HMRC regarding the enforcement and review of penalties associated with MTD. Staying informed and proactive will help avoid unexpected fines and ensure compliance with the evolving tax digitalisation landscape.

Suggested internal link anchors
– Making Tax Digital compliance
– Landlord digital record keeping
– HMRC landlord penalties
– MTD exemption for landlords
– Landlord tax filing deadlines
– Digital exclusion safeguards
– Quarterly tax updates
– Landlord income thresholds
– Property tax regulations
– MTD software requirements
– Landlord communication with HMRC
– Late filing penalties

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/