Making Tax Digital for Income Tax starts 6 April 2026. Seven days from now.
Here are the questions filling HMRC's helpline and every UK freelancer forum right now — with actual answers.
"Do I definitely have to do this?"
Only if your qualifying income (gross self-employment + property income combined) exceeded £50,000 in the 2024-25 tax year.
Key word: gross. Before expenses. If you earned £52k gross but only £35k net — you are in scope.
Use the free MTD Readiness Checker at landolio.com — 8 questions, instant result.
"I missed the deadline — am I in trouble?"
Technically yes. But HMRC has signalled a soft landing for 2026-27. They will not come for you with fines on day one.
That said: do not use "soft landing" as an excuse to ignore it. The points-based penalty system kicks in regardless, and points accumulate silently until you hit a fine threshold.
Get set up. Even imperfectly.
"What software do I actually need?"
HMRC-recognised MTD-compatible software. The shortlist most sole traders end up on:
- QuickBooks Self-Employed — designed for this use case
- FreeAgent — popular with limited companies but works
- Xero — more features than most sole traders need, but works
- Coconut — lightweight option for simple affairs
Most charge £10-30/month. Free options are limited.
"I have property and freelance income — do both count?"
Yes. HMRC combines them.
Freelance income £38k + rental income £15k = £53k qualifying income = in scope.
This catches more people than the headline £50k threshold suggests.
"I file Self Assessment every year — is that enough?"
No. MTD is additional.
You will still file Self Assessment (annual). MTD adds quarterly digital submissions via software. They are separate obligations.
"What happens if I just... do not?"
Points. Then fines.
- Each missed submission = 1 point
- 4 points in 12 months = £200 fine
- Points take a year to expire after a clean run
See the MTD penalty calculator at landolio.com.
Not sure where to start?
The MTD Readiness Toolkit (£14) covers registration, software setup, and Q1 submission walkthrough — for the sole trader leaving this to the last minute.
Or start free: MTD Readiness Checker takes 2 minutes.
7 days is enough time. Not if you wait another 3 of them.
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