Updated for 2026/27 tax year
Making Tax Digital
is now live.
Since 6 April 2026, HMRC requires self-employed people and landlords earning over £50,000 to file tax updates every quarter using software. Not once a year. Four times a year. If that's news to you, you need to catch up. Here's what you need to know.
Am I affected?
MTD for Income Tax applies to you if you're a sole trader or a landlord. It does not apply to limited companies or partnerships (yet). The start date depends on your gross income.
Wave 1
£50,000+
From 6 April 2026
Around 780,000 people. If your self-employment or property income is above £50k, this is your start date.
Wave 2
£30,000+
From 6 April 2027
Another 970,000 people join. Same rules, just a year later.
Wave 3
£20,000+
From 6 April 2028
The net widens. Nearly 3 million taxpayers will be covered by this point.
Watch out: The threshold is based on your gross income (turnover), not profit. And if you have both self-employment and rental income, they get added together.
What actually changes
Before MTD
- One Self Assessment tax return per year
- Gather all your records in January
- File online or on paper
- Can keep paper records
With MTD
- Four quarterly updates + a final declaration
- Keep records as you go throughout the year
- Must use HMRC-recognised software
- Records must be digital from the start
Quarterly deadlines for 2026/27
You'll submit a summary of income and expenses every three months. These aren't full tax returns. Think of them as check-ins. Your actual tax bill is still calculated at year end.
| Quarter | Period | Submit by |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 7 August 2026 |
| Q2 | 6 Jul – 5 Oct | 7 November 2026 |
| Q3 | 6 Oct – 5 Jan | 7 February 2027 |
| Q4 | 6 Jan – 5 Apr | 7 May 2027 |
| Final declaration | Full year | 31 January 2028 |
What should you do right now?
Work out if you're in scope
Add up your gross self-employment income and property income. If the total is over £50,000, MTD is already live for you.
Choose MTD-compatible software
HMRC publishes a list of recognised software. You can use a full accounting package like Xero or QuickBooks, or a simpler tool built just for MTD submissions. Pick one and get set up.
Start keeping digital records now
If you haven't started yet, do it today. Record your income and expenses digitally. Date, amount, category. That's all HMRC needs. Your first quarterly update (Q1) is due by 7 August 2026.
Talk to your accountant
If you use one, ask how they're handling MTD. Some want you on specific software. Others are flexible. Either way, have the conversation now if you haven't already.
Mark the deadlines
Put the quarterly dates in your calendar with a reminder one week before each. Missed deadlines mean penalty points.
Read the full guides
Each guide covers one topic properly so you know exactly where you stand.
25 Apr 2026 · 4 min read
MTD Thresholds Are Dropping Fast: The £30K and £20K Deadlines Coming Next
Think MTD doesn't affect you because you earn under £50,000? The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Here's why you should prepare now.
22 Apr 2026 · 5 min read
Your Accountant Might Not Be Ready Either: 42% of Firms Are Behind
An IRIS survey found nearly half of UK accountants weren't fully prepared for MTD. Find out what that means for you and the questions you should be asking.
20 Apr 2026 · 5 min read
Can I Still Use Spreadsheets for Making Tax Digital?
Short answer: yes, but only with bridging software. Here's exactly what HMRC allows, what bridging tools are available, and whether a spreadsheet is still worth it.
18 Apr 2026 · 4 min read
Should You Sign Up for MTD Early? The Case for Going Voluntary
Even if you earn under £50,000, you can sign up for MTD now. Over 100,000 people already have. Here's why early adopters say it's worth it.
15 Apr 2026 · 5 min read
MTD Quarterly Updates: What You Actually Have to Submit
A quarterly update isn't a full tax return. Here's exactly what goes into each submission, how long it takes, and what happens after you hit send.
14 Apr 2026 · 5 min read
MTD for Jointly Owned Property: The Headache Nobody Warned You About
Own a rental property with your spouse or partner? Under MTD, you both have to file separately. We explain how joint ownership works and what to watch out for.
12 Apr 2026 · 6 min read
The Best Free and Cheap MTD Software in 2026
You don't need to spend a fortune on MTD software. We list the free and affordable options that HMRC recognises for Making Tax Digital.
10 Apr 2026 · 4 min read
No Fines for Late Quarterly Updates in Year One. But Don't Get Complacent
HMRC won't issue penalty points for late quarterly submissions in 2026/27. We break down what that covers, what it doesn't, and why you should still file on time.
8 Apr 2026 · 5 min read
94% of Businesses Weren't Ready for MTD. Are You Sorted Yet?
A survey by Azets found most businesses were unprepared for Making Tax Digital. Your first quarterly update is due in August. Use this checklist to catch up.
6 Apr 2026 · 5 min read
Am I Exempt from Making Tax Digital? The Full List for 2026
Not everyone has to comply with MTD. Here's every exemption category, who qualifies, and how to apply if you think you're eligible.
25 Mar 2026 · 8 min read
What Is Making Tax Digital? A Proper Explanation
HMRC has changed how self-employed people and landlords report their tax. We explain what Making Tax Digital actually is, who it hits, and what to do about it.
22 Mar 2026 · 7 min read
MTD for Self-Employed: What Sole Traders Need to Do
Freelancer, contractor, sole trader? This guide covers what Making Tax Digital means for you, what records HMRC expects, and a step-by-step checklist.
18 Mar 2026 · 7 min read
MTD for Landlords: What Rental Income Means Under the New Rules
If you earn rental income from property, Making Tax Digital applies to you too. We cover how it works for landlords, including joint ownership and multiple properties.
15 Mar 2026 · 5 min read
Every MTD Deadline for 2026/27 in One Place
The full Making Tax Digital calendar for the 2026/27 tax year. Quarterly submission dates, the final declaration, payment dates, and when penalties start.
12 Mar 2026 · 6 min read
MTD Penalties: How the Points System Works and How to Avoid Fines
HMRC's new penalty system for Making Tax Digital uses points, not instant fines. We explain how many points trigger a penalty, what the fines are, and how to reset.