MTD Quarterly Update Example for Landlords: 2026/27 Buy-to-Let Walkthrough

Who this 2026/27 MTD example applies to

This example is for an individual UK landlord registered for Self Assessment who is in the first MTD Income Tax wave from 6 April 2026. HMRC says this first wave applies where qualifying income was over £50,000 for the 2024 to 2025 tax year.

Qualifying income means gross income from self-employment and property before expenses. So a landlord with £52,000 of rent and £12,000 of allowable expenses is still over the £50,000 test because HMRC looks at the income, not the profit.

The later phases are also fixed in HMRC guidance: qualifying income over £30,000 for 2025/26 brings you in from 6 April 2027, and qualifying income over £20,000 for 2026/27 brings you in from 6 April 2028.

• This is for an individual landlord, not a limited company landlord.
• The example assumes UK residential property income.
• The example uses the standard tax-year quarters rather than a calendar-quarter election.
• If you have self-employment as well as property income, you keep separate digital records and send separate updates for each relevant income source.

The example landlord: one mortgaged buy-to-let

Meet Priya. She owns one UK residential buy-to-let in her own name. Her 2024/25 rental income was above £50,000, so she must use MTD for Income Tax from 6 April 2026.

Priya uses cash basis records, which HMRC says is the default accounting method for self-employment and property income. She records income when received and expenses when paid, unless her accountant later advises that a specific year-end adjustment is needed.

Her software keeps each rent receipt and expense as a digital record. The quarterly update then sends HMRC the totals by category, not the line-by-line bank transactions.

2026/27 quarterly update deadlines and what Priya submits

For standard MTD update periods, Priya’s four 2026/27 submissions are due after each quarter. HMRC guidance says each quarterly update includes totals for the income and expense categories used, and each update covers the period from the start of the tax year to the end of the update period.

That cumulative design is important. Priya’s second update does not only show the activity from 6 July to 5 October. It shows the year-to-date totals to 5 October. Her software creates the figures from the digital records already entered.

Use our MTD quarterly deadline calendar if you want the dates in a checklist format.

What HMRC sees in the quarterly update

HMRC’s quarterly update direction lists the property income and expense categories that can be included. For UK property, these include total rent, other property income, repairs and maintenance, residential finance costs, legal and management fees, costs of services provided, travel expenses and other allowable property expenses.

Priya’s software may show her more detail internally, such as tenant name, property address, receipt image and bank transaction. HMRC does not receive those individual records in the quarterly update. The update sends the totals for the relevant categories.

That means the practical task is categorisation. A new boiler repair goes under repairs and maintenance if it is a revenue repair; a letting agent fee goes under legal, management and other professional fees; mortgage interest goes under residential property finance costs. See MTD rental income and expense categories for a fuller category-by-category guide.

What waits until the year-end tax return

The quarterly update is not where Priya claims every relief, finalises every adjustment or calculates her final Income Tax bill. HMRC says that after the fourth update, you may need to adjust the data before completing and submitting the tax return.

Typical year-end items include removing disallowable expenses, making prepayment or accrual adjustments if using traditional accounting, claiming reliefs or allowances, dealing with capital allowances where relevant, and adding other personal tax information.

For 2026/27, Priya’s MTD tax return is due by 31 January 2028. That is also when any balancing Self Assessment payment is normally due. If payments on account apply, the second payment on account deadline remains 31 July.

Corrections, void periods and late updates in the first year

If Priya spots a mistake, she should correct her digital records when she becomes aware of it. For example, if a £420 insurance payment was wrongly posted to repairs, she should correct the category in the software rather than leave it until January 2028.

If there is a void period with no rent and no expenses in a quarter, Priya still has to send the quarterly update. HMRC guidance is clear that you must still send an update if you have not received income or incurred expenses in the latest update period.

HMRC has said it will not apply penalty points for late quarterly updates during the 2026/27 tax year. That is a soft landing for late quarterly update points, not permission to ignore MTD. The updates still need to be sent before Priya can submit the tax return.

• Correct records as soon as you find an error.
• Do not wait until the fourth update to reconcile the bank feed.
• Submit a nil or no-activity update if the period has no rental movement.
• Keep receipts and evidence even though HMRC does not receive them with the update.
• Use how to correct an MTD quarterly update if you need to fix a submitted figure.

Step by step

1. 1

   Check whether you are in scope

   Confirm whether your gross property and self-employment income puts you above the relevant MTD threshold. For the first landlord wave, HMRC looks for qualifying income over £50,000 for 2024/25, with MTD starting on 6 April 2026.

2. 2

   Set up digital property records

   Use MTD-compatible software to record each rent receipt and expense. Connect a landlord bank account where possible, then attach or store receipt evidence so the quarterly totals can be checked.

3. 3

   Categorise each transaction

   Post rent, insurance, repairs, agent fees, travel and mortgage interest to the correct property categories. Residential mortgage interest should be kept separate as residential property finance costs.

4. 4

   Review the year-to-date quarterly totals

   Before submitting, compare the software totals with your bank records and letting agent statements. The quarterly update is a summary, but it should still reflect the records you hold.

5. 5

   Submit the quarterly update by the deadline

   Send Q1 by 7 August 2026, Q2 by 7 November 2026, Q3 by 7 February 2027 and Q4 by 7 May 2027. Keep evidence of submission in your software or HMRC account.

6. 6

   Finish the year-end tax return

   After Q4, make any year-end adjustments, add other income and reliefs, and submit the MTD tax return by 31 January 2028 for the 2026/27 tax year.

A worked example

Priya’s software has created these year-to-date totals by the time her fourth 2026/27 quarterly update is ready. These are the figures sent as category totals, not the final tax bill.

The £44,500 figure is not Priya’s final tax liability. It is a bookkeeping result before any year-end tax adjustments, other income, personal allowances, payments on account and the final Self Assessment calculation.

Frequently asked questions