Making Tax Digital for income tax (MTD IT) is now mandatory for many sole traders and landlords from the 6 April 2026. It requires you to keep digital records and send quarterly updates four times a year to HMRC from compatible software.
Who does it affect?
From 6 April 2026
You must use MTD-compatible software if your qualifying income from self-employment and property exceeds £50,000 in the 2024/25 tax year.
From 6 April 2027
The requirement extends to those with qualifying income above £30,000 in the 2025/26 tax year.
From 6 April 2028
The requirement extends to those with qualifying income above £20,000 in the 2026/27 tax year.
Key Dates
Quarterly deadlines
- 7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027
31 January 2027 – deadline to file a “traditional” self assessment return for the 2025/26 tax year, even if you have started MTD for 2026/27.
Late Filing Penalties
*Taxpayers mandated in April 2026 (Phase 1) will not receive penalty points for their first 4 quarterly updates. This was announced in the 2025 Autumn Budget. This doesn’t apply to the 2026/27 year-end filing.