🇬🇧 Who needs to use Making Tax Digital for Income Tax?

If you're a sole trader or property landlord with gross income from self-employment and/or UK property above these thresholds, you are legally required to comply:

£50,000+ 🇬🇧

per year

from 6 April 2026
£30,000+ 🇬🇧

per year

from 6 April 2027
£20,000+ 🇬🇧

per year

from 6 April 2028
📌

Income from employment (PAYE), pensions or dividends does not count towards these thresholds – it's only self-employment and rental income.

🧾 What you must do once you're in scope

MTD for Income Tax means moving from a single annual return to four quarterly updates plus a final declaration. Here are the essentials:

💻

Keep digital records

You must record income and expenses in HMRC-compatible software (spreadsheets or paper no longer accepted).

📊

Send quarterly updates

Four summaries of your business figures – instead of one annual return. Deadlines below.

📆 Quarterly update deadlines (standard dates from April 2026)

Quarter Period covered Report by
1st quarter 6 April – 5 July 7 August
2nd quarter 6 July – 5 October 7 November
3rd quarter 6 October – 5 January 7 February
4th quarter 6 January – 5 April 7 May
⭐ These are the standard dates for someone starting MTD from April 2026. After each quarter, you have around one month to file.

🧾 End‑of‑year submission & tax payment

At the end of the tax year you still need to submit an annual declaration (final figure reconciliation) and pay any tax due by 31 January after the year ends.
For example, for year ending 5 April 2027, that means 31 January 2028.

So overall you’ll have 5 deadline events per year (4 quarterly reports plus the end-of-year declaration).

🤔 Do the old Self Assessment deadlines still exist?

Yes — during the first year of MTD (2026–27 tax year) you'll still need to file your usual Self Assessment for the 2025–26 tax year by 31 January 2027, because MTD only starts after that year ends. After the transition, the 31 January online filing deadline for the previous year remains for the final declaration.

⚠️ Penalties for missing deadlines

HMRC is introducing a points-based penalty system for late quarterly updates and final submissions. You accumulate a penalty point for each late deadline. After reaching a certain number of points, you'll receive financial fines. Each point has a time limit and can expire after a period of compliance, but it's crucial to meet every MTD deadline.

Our service ensures you never miss a deadline — we schedule and file every update on your behalf.

✅ Why choose our MTD service? (£60 per quarter)

  • Fully HMRC-recognised MTD compatible software included
  • We set up your digital records and link them to your HMRC account
  • Quarterly updates filed automatically from your income/expense data
  • Unlimited support from UK-based MTD specialists
  • Final declaration and reconciliation – we calculate your tax liability
  • No more spreadsheets or paper records; everything cloud-based

🇬🇧 MTD for Income Tax across the UK

MTD applies across England, Scotland, Wales and Northern Ireland. If you have both self-employment and property income, they are combined for the threshold test. Our service is tailored for the whole UK, with full understanding of HMRC digital rules.

Already under £20k? You can volunteer early to get used to the system. We offer the same £60/quarter support for early adopters.

Frequently Asked Questions about MTD

1. What if I have both self-employment and property income?

You combine the gross income from both sources. If the total exceeds the threshold (e.g., £50,000 from April 2026) you must follow MTD for both. We'll help you set up separate digital records if needed.

2. Can I still use my spreadsheet?

Not directly for filing. HMRC requires MTD-compatible software to record and send updates. However, we can import your spreadsheet data into our software for you, making the transition seamless.

3. What about the £1,000 property/trading allowance?

The allowance still exists. If your gross income is below the threshold after the allowance, you may not need to do MTD. But if your turnover is above £50k gross, the allowance doesn't remove the requirement. We'll advise based on your exact figures.

4. Will I need to file a Self Assessment tax return as well?

During the first year (2026-27) you'll still file the 2025-26 return as normal. After that, the end-of-year MTD declaration largely replaces the traditional Self Assessment, though some supplementary information may still be required. We handle it all.

5. What if my income fluctuates near the threshold?

If you're below the threshold in one year but exceed it the next, you must start MTD from the following April. Similarly, if you drop below, you may opt out but can continue voluntarily. Our service is flexible and we'll monitor your status with you.