The Making Tax Digital for Income Tax deadline is 6 April 2026.
If you're a sole trader or landlord earning over £50,000, you're legally required to:
- Keep digital records
- Submit quarterly updates to HMRC via MTD-compatible software
- Replace your annual self-assessment with this new system
Most people I've spoken to either don't know this applies to them or haven't taken any action.
What actually changes
Before MTD: File one annual return by 31 January. Done.
After MTD (from April 2026): File quarterly updates (July, October, January, April) plus an annual finalisation. That's 5 submissions per year instead of 1. Each must come from approved software.
The threshold is £50k... for now
- April 2026: £50,000+
- April 2027: £30,000+
- April 2028: TBD (likely lower)
If you're just under the threshold, build the habit now. You'll be in it within a year or two.
What you need to do before 6 April
- Check if you're affected — add up your self-employed income + rental income. Over £50k combined? You're in.
- Choose MTD-compatible software — FreeAgent, Xero, QuickBooks, Sage, and HMRC's own free bridging tool all qualify. FreeAgent is free with many bank accounts.
- Sign up with HMRC for MTD — you need to enrol separately at gov.uk/sign-up-for-making-tax-digital-for-income-tax
- Import/migrate your records — get your current year records into the new software
- Submit your first quarterly update — first one covers 6 April to 5 July, due 5 August 2026
Free tools
I built a MTD Readiness Checker — 2 minutes, tells you exactly what applies to you and what to do.
Also a MTD penalty calculator for the new points-based system.
The penalty system is different now
MTD doesn't use the old £100 flat penalty. It uses a points system:
- Each missed submission = 1 point
- Hit 4 points = £200 penalty
- Then £200 per additional miss
The points reset if you stay compliant for a period. But rack up 4 misses quickly and the charges start.
17 days. Is your accounting software MTD-ready?
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