Making Tax Digital for Income Tax stopped being a future change and became a live obligation this year. From 6 April 2026, any sole trader or landlord with qualifying income over £50,000 in the 2024–25 tax year is required to keep digital records and submit quarterly updates to HMRC, rather than filing a single annual Self Assessment return.
HMRC reviewed 2024–25 Self Assessment returns filed by 31 January 2026 to identify who meets the threshold, and wrote directly to anyone required to join. The first quarterly update — covering 6 April to 5 July 2026 — was due by 7 August 2026. If you’re reading this shortly after that date, it’s worth checking whether that applied to you and, if so, whether it actually happened.
Who this affects, and who’s next
The rules apply based on qualifying income from self-employment and/or property, not the type of business structure:
Over £50,000 in the 2024–25 tax year — in scope from 6 April 2026 (the current phase).
Over £30,000 in the 2025–26 tax year — in scope from 6 April 2027.
Over £20,000 in the 2026–27 tax year — in scope from 6 April 2028.
Partnerships aren’t in scope yet; HMRC has said a timeline will follow separately. If you didn’t receive a letter from HMRC but think your income puts you over a threshold, the responsibility to check and sign up sits with you, not HMRC — there’s an official tool on GOV.UK for working out qualifying income and confirming when you need to start.
What actually changes day to day
The headline change is frequency: instead of one Self Assessment return a year, MTD for Income Tax requires digital records kept throughout the year and quarterly updates submitted through HMRC-recognised software, followed by a final declaration after the tax year ends. Spreadsheets can still work as part of the process in some cases, but they generally need to connect to compatible software via bridging tools rather than being submitted directly — which is often where the practical friction shows up for businesses used to doing everything at year end.
Where this catches people out
A few patterns show up repeatedly with clients moving into MTD for the first time:
Assuming it doesn’t apply because “I’m just a landlord” or “I’m not VAT registered” — the threshold is about qualifying income, not business type or existing VAT status.
Leaving software selection until the deadline is close, rather than choosing and testing it against a real quarter’s records first.
Treating the first quarterly submission as a rough estimate rather than something worth getting right — each quarter’s figures build toward the year-end final declaration, so early mistakes compound.
Not realising the threshold review happens every year — dropping below £50,000 doesn’t automatically take you out of MTD once you’re in, and the £30,000 threshold is only a year away.
What we’d suggest if this applies to you
If you’re now in scope, or expect to be from April 2027 as the £30,000 threshold takes effect, the sooner your records move to a digital, HMRC-compatible format, the less disruptive the transition. That’s the kind of setup and ongoing compliance work our tax and accountancy team handles for clients — getting the right software in place, keeping quarterly submissions accurate rather than just on time, and making sure nothing about the switch to MTD catches you out at year end.
Source: GOV.UK / HM Revenue & Customs, “Find out if and when you need to use Making Tax Digital for Income Tax”, last updated 26 March 2026.