Since 6 April 2026, many UK sole traders and landlords have had to keep digital records and send quarterly updates to HMRC through compatible software. This is Making Tax Digital (MTD) for Income Tax. Here's who it applies to, when, and what to do next.
Who has to use it, and when
It applies to sole traders and landlords registered for Self Assessment, based on their qualifying income: total income from self-employment and property before expenses, not profit.
| Qualifying income | Measured in tax year | Must start from |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
HMRC writes to people above the threshold, but it remains your responsibility to check. Partnerships will join later, on a timeline HMRC has not yet set.
What changes
- Keep your income and expense records digitally, in software that works with MTD.
- Send a quarterly update of income and expenses through that software.
- Submit your tax return by 31 January after the end of the tax year, as before.
Quarterly deadlines for 2026 to 2027
| Update period | Deadline |
|---|---|
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 April to 5 October 2026 | 7 November 2026 |
| 6 April 2026 to 5 January 2027 | 7 February 2027 |
| 6 April 2026 to 5 April 2027 | 7 May 2027 |
If your accounting periods run from 1 April to 31 March, you can choose calendar quarters instead. The deadlines stay the same.
Penalties: the new points system
Each missed deadline earns one penalty point. When you reach four points, you pay a £200 penalty, and another £200 for each further missed deadline. For the 2026 to 2027 tax year, HMRC won't give points for late quarterly updates, but you must still send all of them before you can submit your tax return. Points still apply to a late tax return.
What to do now
- Work out your qualifying income for each tax year above.
- Choose MTD-compatible software. HMRC publishes a list, and cloud tools such as Xero and QuickBooks are common choices.
- Connect bank feeds and start capturing receipts digitally, so each quarter is quick.
- Put the four quarterly deadlines and 31 January in your calendar.
- If an agent will submit for you, set up their authorisation early.
How we help
We set up MTD-ready bookkeeping and prepare each quarterly update, so it's ready to submit through your software or your agent with no last-minute rush. Start with a free Leak Check.
This article is general information, not tax or legal advice. Rules change, so check the current position or speak to us before acting.