Quarterly Reporting for Property Income Under MTD

Last updated: April 2026

If you’re a property landlord subject to Making Tax Digital (MTD), you need to file quarterly reports to HMRC instead of waiting for the annual Self Assessment deadline. This guide covers everything you need to know about quarterly reporting for property income.

What is Quarterly Reporting?

Quarterly reporting is a core requirement of MTD for landlords with rental income exceeding the VAT threshold (£90,000) or those who choose to voluntarily join MTD. Instead of filing one annual tax return, you submit summary updates four times per year.

Why Quarterly?

The shift to quarterly reporting helps HMRC collect tax more regularly throughout the year, reducing the end-of-year shock and improving tax compliance. For landlords with multiple properties, this also means better cash flow management as you’re paying tax in smaller, more predictable amounts.

The Four Quarters Explained

Quarter 1: April to June

• Period covered: 6 April to 5 July
• Deadline: 5 July (or the following 7th if electronic)
• Typical timing: Covers early summer lets and Easter bookings

Quarter 2: July to September

• Period covered: 6 July to 5 October
• Deadline: 5 October
• Typical timing: Covers peak summer holiday season

Quarter 3: October to December

• Period covered: 6 October to 5 January
• Deadline: 5 January
• Typical timing: Covers Christmas bookings and winter lets

Quarter 4: January to March

• Period covered: 6 January to 5 April
• Deadline: 5 May
• Typical timing: Covers end of tax year

What to Include in Each Report

Each quarterly report requires specific information about your property income and expenses during that period.

Required Information

Common Income Sources to Report

• Short-term rental income (Airbnb, VRBO, Booking.com)
• Long-term tenant rent
• Additional fees (late payment fees, cleaning fees retained)
• Any other property-related income

Deductible Expenses to Track

• Agent letting fees and management charges
• Cleaning and maintenance costs
• Utilities (if you pay and include in rent)
• Insurance premiums
• Accountant’s fees
• Mortgage interest (limited to 20% tax credit)
• Repairs (not improvements)

How to Submit Quarterly Reports

MTD requires software that connects directly to HMRC’s API. You cannot manually submit via the HMRC website.

Software Requirements

Your accounting software must be MTD-compatible and able to:

• Record transactions digitally
• Calculate tax due
• Submit quarterly updates via API
• Maintain digital audit trails

Popular Options for Landlords

1. Dedicated property accounting software - Designed specifically for landlords with MTD compliance
2. Cloud accounting platforms - Such as Xero or FreeAgent with MTD plugins
3. Spreadsheet with add-ons - For simpler portfolios (less recommended)

Timing Tips for Property Landlords

Stay Ahead of Deadlines

• Set calendar reminders 2 weeks before each deadline
• Reconcile income monthly to avoid quarterly crunch
• Keep platform statements filed and accessible
• Consider filing early to allow for error correction

Managing Peak Periods

The Q2 (July-September) and Q4 (January-March) quarters often cover the busiest periods for holiday lets. Ensure your bookkeeping stays current during high-volume months to avoid errors in quarterly submissions.

Common Mistakes to Avoid

1. Missing deadlines - Late submissions trigger penalties
2. Forgetting to include all income - Platform reports may differ from your records
3. Incorrect expense categorization - Some expenses aren’t deductible
4. Not keeping digital records - MTD requires digital record-keeping
5. Underestimating tax due - Budget for quarterly payments

Related Posts

• Digital Record Keeping for Property - Essential for MTD compliance
• MTD Penalties: What Happens If You Miss - Avoid costly fines
• Making Tax Digital for Property Managers - Full MTD guide

Try HMRC Reporter: https://hmrcreporter.com