Landlords could be landed with costs of nearly £500 to comply with HMRC’s new digital filing requirements.

New software and training bills could be expensive for landlords who will have to file quarterly tax returns, the Daily Telegraph reports.

A new duty for landlords to submit tax return information quarterly from April 2028 now applies to those with income above £20,000.

New cut-off

The change, which is included in the Government’s Making Tax Digital plans, was announced in Chancellor Rachel Reeves’ Spring Statement.

The previous threshold for rent income was £30,000, and the new cut-off will pull many more BTL investors in.

New tax filing rules will apply from April 2026 for landlords with qualifying income over £50,000, and extend to those with incomes over £30,000 the following year.

ARLA Propertymark President Angharad Trueman told The Neg recently that the Government was guilty of piling even more pressure onto the PRS. New tax rules would be the ‘last straw’ for landlords, she says.

At least £480

The new digital rules require businesses and individuals to pay for software to file their tax returns, with the cheapest available costing £150, the Telegraph reports.

And HMRC estimates that training and transitional costs for small businesses will cost up to £330.

So, self-employed workers will be faced with at least £480 of extra costs to comply with the rules.

New tax rules are ‘last straw’ for landlords, Propertymark leader claims