Making Tax Digital for Income Tax changes how qualifying sole traders and landlords keep records and report business and property information. It does not replace the annual tax return.
Who must use it
- Qualifying income over £50,000: from 6 April 2026.
- Over £30,000: from 6 April 2027.
- Over £20,000: from 6 April 2028.
Qualifying income is gross self-employment and property income before expenses, combined across relevant sources. Employment income, dividends and pensions do not count towards this threshold.
What changes
People within scope must use compatible software, create digital records, send quarterly summaries for each business, make year-end adjustments and submit the annual return through software.
Quarterly deadlines
For standard tax-year periods, the deadlines are 7 August, 7 November, 7 February and 7 May. Each update is cumulative from the start of the year. HMRC receives totals rather than every invoice or receipt.
Prepare now
Confirm qualifying income, choose software that supports all income sources and the final return, bring bookkeeping up to date, agree responsibilities with your accountant and test authorisations before the first deadline. HMRC states that quarterly-update penalty points will not apply for 2026/27, but updates are still required before the return can be submitted.
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