Making Tax Digital for Income Tax goes live 6 April 2026. That's this coming Monday.
If you're a sole trader or landlord earning over £50,000 and you haven't set up MTD-compatible software yet, you're cutting it very fine.
Here's what you need to do before midnight on Sunday.
What MTD for Income Tax actually means
From 6 April, HMRC requires you to:
- Keep digital records of your income and expenses
- Use MTD-compatible software
- Submit quarterly updates (not annual — quarterly)
- Send a final declaration at the year end
Paper records, spreadsheets-only, and annual self-assessment on its own? No longer compliant.
The emergency 6-day checklist
Today (Tuesday):
- [ ] Confirm you're in scope: sole trader or landlord, £50k+ income in 2024-25
- [ ] If you do CIS work — you're in scope too, and many CIS contractors don't realise
- [ ] Pick your MTD software (QuickBooks, FreeAgent, Xero, or HMRC's free options)
Wednesday:
- [ ] Create your account and link it to your HMRC credentials
- [ ] Import or manually enter any income/expenses from 6 April year-to-date
- [ ] Check your NI number and UTR are correct in the software
Thursday–Friday:
- [ ] Do a test run of a quarterly submission (most software has a draft/preview mode)
- [ ] Download your existing Self Assessment records as backup
- [ ] Set up your bank feed if the software supports it (saves future manual entry)
Weekend:
- [ ] Submit your first quarterly update (or queue it)
- [ ] Confirm HMRC has received it — check your HMRC online account
- [ ] Set recurring quarterly reminders: 5 Aug, 5 Nov, 5 Feb, 5 May
What happens if you miss it
HMRC's MTD penalty system works on points, not immediate fines:
- Each late quarterly submission = 1 point
- 4 points = £200 fine
- Points expire after 24 months (if you've been compliant)
- Deliberate non-compliance = higher penalties
So missing one quarter won't immediately cost you money — but it starts a clock.
The bits that catch people out
Landlords with a property and a freelance business: Both income sources count toward the £50k threshold. You might be in scope when you thought you weren't.
Jointly owned property: Each owner is assessed separately. If you and your partner own a rental, you're both potentially in scope independently.
CIS subcontractors: If your contractor deducts CIS tax on your behalf, you're still a sole trader for MTD purposes. You need to comply.
Side income alongside employment: MTD only applies to self-employed and rental income. Your PAYE employment doesn't pull you in — only what you earn outside employment.
If you want a structured walkthrough rather than piecing it together from HMRC guidance, I put together an MTD Readiness Toolkit for UK freelancers — it covers the software setup, the quarterly cycle, record-keeping formats, and common mistakes. Less than the cost of one hour's accountant time.
6 days. Get it done this week.
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