Making Tax Digital for Income Tax

Making Tax Digital for Income Tax is already part of reporting for the first group of sole traders and landlords. The first mandatory phase began on 6 April 2026. If it applies to you, you must keep digital records, send quarterly updates and submit your annual tax return through compatible software. Quarterly updates do not replace the tax return.

Who should already be using MTD?

Your start date depends on qualifying income from an earlier tax year: your combined gross self-employment and property income before expenses, not your profit or take-home income.

• Qualifying income over £50,000 in 2024–25: you should already be using MTD from 6 April 2026, unless exempt.
• Qualifying income over £30,000 in 2025–26: MTD from 6 April 2027, unless exempt.
• Qualifying income over £20,000 in 2026–27: MTD from 6 April 2028, unless exempt.

Some people are exempt or can apply for an exemption, including where digital exclusion makes using the system unreasonable. Your circumstances need checking rather than assuming you are exempt. GOV.UK: check whether and when MTD for Income Tax applies (opens in a new tab).

HMRC is now signing up some people it identifies as required to use MTD for 2026–27, but you remain responsible for checking your position. Do not wait for a letter to check. See GOV.UK: what to do if HMRC has signed you up for MTD for Income Tax (opens in a new tab).

Digital records, quarterly updates and your tax return

Keep business income and expenses in digital records using compatible software. Quarterly updates provide cumulative summaries for each business; they are not four final tax returns or four separate tax bills. The annual tax return brings together your final figures, other income, adjustments, reliefs and allowances.

Tax payment dates do not change solely because of MTD. Keeping the records current helps you understand your position without confusing reporting deadlines with payment deadlines.

What we do for you

• Check whether and when the rules apply to your income
• Set up compatible software and connect it to HMRC
• Move your existing records across and tidy up the opening position
• Keep your bookkeeping up to date through the year
• Prepare and submit your quarterly updates and annual tax return through compatible software

Support for the first group and later phases

Quarterly reporting only works well if your records are kept up to date as you go. Getting your software and bookkeeping in order helps whether you should already be using MTD or join a later phase. If your start date has passed, contact us now to review what needs doing.

Our detailed guide to MTD for sole traders and landlords explains the reporting. You may also find our landlord records guide and MTD guide for CIS subcontractors useful.

Not sure where you stand? Make an MTD enquiry and we’ll tell you plainly what applies to you and what needs to happen next.

General information as at 10 October 2026, not advice for your particular circumstances. Please check your position before acting.