Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of quarterly reporting requirements under Making Tax Digital for Income Tax and Self Assessment on (a) landlords’ administrative costs and (b) rent levels for tenants.

HMRC has undertaken detailed assessments of the potential impact of Making Tax Digital (MTD) for Income Tax on compliance costs and administrative requirements across different taxpayer groups, including seasonal workers, self-employed individuals, small businesses, and landlords. The latest published assessment is available at:

Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords - GOV.UK

HMRC has worked to ensure that MTD for Income Tax works well for all kinds of businesses. In-year, quarterly updates are not like full tax returns.

They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.

Quarterly updates reduce the risk of error by moving record-keeping closer to real time. They also make preparing the tax return easier, as much information is already captured and categorised. Updates can help inform estimates of tax liability and prompts to help taxpayers get their tax right.

The Government has taken steps to minimise costs to businesses resulting from MTD, including work with the software industry to ensure free software is available for those with simple affairs.

Following MTD’s introduction in April 2026, HMRC will support MTD users with fully-trained advisers in sufficient numbers to manage anticipated demand.

In advance of MTD’s rollout, nearly 5,000 volunteers have signed up to test the service. HMRC’s dedicated teams are working to ensure the new systems and processes operate as planned and the right guidance and training is in place for both advisors and users.

As a major government programme, HMRC routinely evaluates MTD’s value for money in line with mandatory Government Major Project Portfolio (GMPP) requirements, which include demonstrating affordability, cost-effectiveness, and delivery of benefits throughout its lifecycle to ensure efficient use of public funds. The latest assessment is at:
Making Tax Digital Programme Accounting Officer Assessment (updated) - GOV.UK