Heard about quarterly reporting for landlords but not quite sure what it means in practice? To help make things clearer, we’ve created a simple guide following a landlord through their first full year under Making Tax Digital for Income Tax (MTD for IT).
Meet Sarah, who owns a small portfolio of rental properties and is preparing for her first year of quarterly tax reporting.
Note: This example follows the 2026/27 tax year, which is when many landlords will begin quarterly reporting under MTD for IT, while still completing a Self Assessment tax return for the previous 2025/26 tax year.
April 2026
The new tax year begins and Sarah is collecting rent as normal. Mortgage payments, maintenance costs and insurance renewals are all part of the usual routine, but there’s one major change this year.
Instead of waiting until January to deal with everything in one go, Sarah now needs to send quarterly updates to HMRC throughout the year. Initially, four deadlines instead of one sounds like extra admin.
To stay organised, Sarah decides to keep on top of things from the start. She uses MTD-compatible software to track rental income and expenses, keeps digital copies of invoices and receipts, and separates property finances from personal spending wherever possible.
August 2026
7th August 2026 marks the deadline for the first quarterly update for the 2026/27 tax year. Sarah needs to submit a summary of rental income and allowable expenses for the period.
Because she’s kept records updated along the way, the process is mostly reviewing the figures and submitting them. Within a short time, Sarah has a clearer idea of how her property business is performing and what her potential tax position may look like.
October 2026
By the second quarter, the process already feels more manageable. Sarah notices she’s spending less time searching through paperwork and has a much clearer view of cash flow across her properties.
Rather than tax being something stressful left until January, it’s become part of her regular property admin.
November 2026
Sarah must submit her second quarterly update for the 2026/27 tax year by 7th November 2026, again confirming her rental income, expenses and overall profit or loss.
January 2027
Sarah still needs to complete her 2025/26 Self Assessment tax return by 31st January 2027. This remains separate from her new quarterly reporting obligations for the 2026/27 tax year.
The Self Assessment submission finalises her previous year’s tax position, while quarterly reporting continues for the current tax year.
February 2027
By 7th February 2027, Sarah needs to submit the third quarterly update for the 2026/27 tax year before the tax year ends in April.
May 2027
The fourth and final quarterly update for the 2026/27 tax year is due by 7th May 2027.
These quarterly updates build the information needed for the end-of-year process, helping reduce the workload and pressure when it comes to finalising tax information later on.
Key dates to know
For the 2026/27 tax year under MTD for IT, the quarterly update deadlines are:
- Quarter 1: Due 7 August 2026
- Quarter 2: Due 7 November 2026
- Quarter 3: Due 7 February 2027
- Quarter 4: Due 7 May 2027
What Sarah learned
By the end of the year, Sarah’s perspective has changed completely. What first felt like more admin actually became less stress, better visibility and greater control over her property finances.
The biggest differences came from:
- Keeping records updated regularly
- Treating tax as part of routine property management
- Setting money aside throughout the year
- Using the right digital tools
So, what should landlords expect?
If you’re approaching your first year of quarterly tax reporting, the first update may feel unfamiliar. But once your records are organised and the process becomes part of your routine, it quickly gets easier.
By the end of the year, many landlords may find they have a clearer understanding of their finances, fewer last-minute surprises and far less stress than leaving everything until January.
Whether you're managing your finances solo or working with an accountant, Coconut takes the stress out of tax and helps you stay compliant.
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Whether you're managing your finances solo or working with an accountant, Coconut takes the stress out of tax and helps you stay compliant.
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