Landlords are already facing changes to how they report property income, and HMRC is now considering whether some Self Assessment taxpayers should make tax payments more frequently. While monthly tax payments for landlords have not been confirmed, the proposals could change how landlords manage their tax and cash flow.
HMRC launched a consultation in June 2026 on more timely payments through Income Tax Self Assessment (ITSA). The consultation looks at changing the timing of tax payments, including potential reforms for taxpayers who currently make Payments on Account.
What Is HMRC Considering?
Under the current Self Assessment system, landlords who are required to make Payments on Account generally make two payments towards their next tax bill.
These are normally due on 31 January and 31 July, with each payment usually equal to half of the previous year's tax liability. A balancing payment may then be required.
HMRC is considering whether this system could be changed so that tax is paid more frequently and closer to when income is received.
The consultation considers options including more frequent payments for taxpayers whose income is not collected through PAYE. However, no decision has been made to introduce monthly tax payments for landlords.
Landlords Are Already Moving Towards More Digital Reporting
The potential payment changes come as landlords are already adapting to Making Tax Digital for Income Tax.
From 6 April 2026, landlords and sole traders with qualifying income above £50,000 are required to use Making Tax Digital for Income Tax. The threshold falls to £30,000 from April 2027.
Landlords within the rules must keep digital records and provide quarterly updates of income and expenses to HMRC.
This means affected landlords are already moving towards more regular recording and reporting of their property income.
Why Could More Frequent Payments Matter?
For landlords, the biggest issue could be cash flow.
Rental income isn't always consistent. A property may have a void period, require an unexpected repair or incur significant maintenance costs.
If tax payments become more frequent, landlords may need to monitor their income and expenses more closely throughout the year.
For a portfolio with several properties, that means having a clear picture of:
The more frequently this information is reviewed, the easier it can be to plan for financial commitments.
This Does Not Mean Landlords Will Pay More Tax
It is important to distinguish between payment timing and tax liability.
HMRC's proposal is about bringing payments closer to when income is earned. It does not, by itself, mean landlords would owe more tax overall. The final tax position would still need to be calculated and reconciled through Self Assessment.
The government has also confirmed that taxpayers with PAYE income will be required to pay more of their forecast Self Assessment liability during the year through PAYE from April 2029.
What Should Landlords Do Now?
Landlords do not currently need to start making monthly tax payments because of this proposal.
But the direction of travel is clear: tax reporting and record-keeping are becoming increasingly digital and more closely connected to activity throughout the year.
Landlords should make sure they can easily track:
For landlords, good record-keeping is becoming less of a once-a-year task and more of an ongoing part of portfolio management.
The Bigger Picture for Landlords
The proposed changes to tax payments sit alongside the wider rollout of Making Tax Digital.
Together, these developments point towards a system where landlords are expected to maintain more timely, accurate and digital records of their property income and expenses.
For landlords, the best preparation is not necessarily predicting exactly what HMRC will introduce next.
It is having a portfolio that is already organised enough to adapt.
How Propell Can Help
Propell helps landlords keep property information, compliance, lettings and portfolio performance organised in one place.
With the right information available when you need it, managing a growing portfolio can become simpler and more efficient.
Stay organised. Stay informed. Stay ahead.
Frequently Asked Questions
1. Will landlords have to pay tax every month?
Not currently. HMRC is considering more frequent Self Assessment payments, but monthly tax payments for landlords have not been confirmed.
2. What tax changes are already affecting landlords?
Making Tax Digital for Income Tax began on 6 April 2026 for landlords and sole traders with qualifying income above £50,000. The threshold reduces to £30,000 from April 2027.
3. What should landlords do now?
Landlords should keep accurate records of rental income, expenses and property information and understand whether they are required to use Making Tax Digital. Keeping records up to date will also make it easier to adapt if HMRC introduces further changes to payment timings.
