Making Tax Digital for Income Tax starts 6 April 2026. If you earn over £50k as a sole trader or landlord, your world is about to change.
No more annual tax returns filed in January. Instead: quarterly digital submissions via approved software, starting from your first quarter after 6 April.
I've been building tools and writing guides about this for weeks. Here's the no-nonsense version of what you need to know with 21 days left.
Who's affected (April 2026)
- Self-employed individuals with qualifying income over £50,000
- Landlords with property income over £50,000
- This drops to £30,000 from April 2027
If you're under £50k, you're safe for now. But start preparing anyway — you're next.
What changes
| Before (Self Assessment) | After (MTD) |
|---|---|
| Annual tax return | Quarterly digital updates |
| Paper records OK | Digital records mandatory |
| File by 31 Jan | Submit within 1 month of quarter end |
| HMRC free tool | Must use approved software |
| One deadline | Five deadlines per year |
The 4 things you need to do NOW
1. Check if MTD applies to you
Not sure? Free MTD Readiness Checker — takes 2 minutes, gives you a personalised action plan.
2. Choose MTD-compatible software
Your options (all HMRC-approved):
- FreeAgent — £19-38/month, popular with freelancers
- Xero — £15-47/month, strong integrations
- QuickBooks — £12-35/month, good for simple setups
- HMRC free tool — £0, very basic, only works for simple cases
Comparison: Best MTD Software for UK Freelancers
3. Set up digital records BEFORE 6 April
Don't wait. Your first quarter starts immediately and you need to be recording digitally from day one. Backfilling is painful.
4. Understand the new penalties
MTD uses a points-based penalty system. Miss a quarterly submission = 1 point. Hit the threshold (4 points for quarterly filers) = £200 penalty. Then £200 for each subsequent miss.
MTD Penalty Calculator — see what missing deadlines would actually cost you.
The cost reality
MTD will cost most freelancers £200-600/year in software alone, plus the time cost of quarterly submissions (roughly 1-2 hours per quarter once you're set up).
MTD Cost Calculator — get a personalised estimate.
Don't panic, but don't wait
21 days is enough time to get set up if you start now. It is NOT enough time if you wait until April 5th.
The tools above are all free. The deadline is not moving. Act this week.
All the free tools mentioned are at landolio.com/tools — no sign-up, no subscription, built specifically for UK freelancers.
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