Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report to HMRC. Instead of one annual return built from a shoebox of receipts, you keep digital records and send short quarterly updates through compatible software.
Who has to join
- From 6 April 2026: qualifying income over £50,000 (based on your 2024/25 return).
- From 6 April 2027: qualifying income over £30,000 (based on your 2025/26 return).
- From 6 April 2028: qualifying income over £20,000 (based on your 2026/27 return).
Qualifying income is your gross income from self-employment and property added together, before expenses. A landlord with £22,000 of rent and a sole trader business turning over £15,000 has £37,000 of qualifying income, even if profits are much lower.
What you will need to do
- Keep records of income and expenses digitally, in MTD-compatible software.
- Send a quarterly update by 7 August, 7 November, 7 February and 7 May.
- Submit a final declaration by 31 January after the end of the tax year.
Quarterly updates are summaries, not mini tax returns. They do not change what you pay, but late updates can build up penalty points.
Getting ready without the stress
- Check your qualifying income for the relevant year now.
- Open a separate bank account for the business or lettings if you haven’t already.
- Choose software that links to your bank feed so most transactions record themselves.
- Start photographing receipts as you get them, rather than in a batch at year end.
How we help
We set up the software, connect your bank, agree a simple monthly routine and file the quarterly updates for you. You keep running your business; we keep HMRC informed.
This article is general guidance based on the rules for the 2026/27 tax year. It isn’t personal advice — talk to us before you act on it.
