
Landlords could end up with a £1,000 bill for failing to keep their email address and mobile number updated under new Making Tax Digital rules.
The Conservatives have labelled the proposed penalty disproportionate and called on the government to reconsider. Speaking during a Parliamentary debate, shadow work and pensions secretary Mark Garnier (pictured) said it was perfectly reasonable to expect users of HMRC online services to provide and keep details current, but that there was no comparable penalty for failing to update a postal address or traditional form of contact.

Garnier said the Association of Taxation Technicians had labelled the proposed £1,000 penalty “unprecedented and disproportionate”. “Are the government not going a bit too far?” he asked. “I remind them that this is about regular taxpayers, and this penalty could catch out people who are more vulnerable or less financially literate.”
Lucy Rigby, economic secretary to the Treasury, promised to keep the issue under review. She also admitted that older customers and those with certain disabilities were more likely to be digitally excluded or digitally assisted and could be disproportionately reliant on paper correspondence. “Safeguards will be included to ensure that those groups can continue accessing paper communications if specifically needed, with a clear and simple opt-out process and ongoing support through non-digital channels.”
Landlords earning more than £50,000 from self-employment and property have two months left to prepare for MTD for Income Tax. From 6th April they will need to use recognised software to keep digital records and send HMRC ‘light-touch’ quarterly updates of their income and expenses.
Those joining MTD in April 2026 will still file their tax return for the 2025 to 2026 tax year in the usual way by 31st January 2027, as this covers the period before MTD begins. The first MTD tax return, covering the 2026 to 2027 tax year, will be due by 31st January 2028.
HMRC is providing a range of free support to help people prepare, including online guidance, webinars and videos.
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