Making Tax Digital for Income Tax started April 2026.
860,000 UK sole traders earning over £50k are affected in year one. The £30k threshold kicks in 2027.
If you're in that group and you haven't done anything yet — you're already behind.
What MTD Actually Means
You can't file a Self Assessment tax return anymore. Instead you submit quarterly digital updates to HMRC — basically quarterly snapshots of your income and expenses.
The four submission windows:
- Quarter 1: April–June → submit by 5 August
- Quarter 2: July–September → submit by 5 November
- Quarter 3: October–December → submit by 5 February
- Quarter 4: January–March → submit by 5 May
Then an End of Period Statement (EOPS) to finalise the year.
The Bit Most People Miss
You need HMRC-approved software to make these submissions. You can't just use a spreadsheet and manually enter figures.
Compatible options include FreeAgent, Xero, QuickBooks, and the HMRC bridging software list. Some are free for basic use.
Your Checklist Right Now
- Confirm your income puts you above the threshold (£50k gross self-employment income)
- Sign up for MTD ITSA via your HMRC online account
- Choose compatible software and link it to HMRC
- Start recording income/expenses digitally from April 6th
If you miss a quarterly submission you can get a penalty. The penalty system works on points — accumulate 4 and you get a £200 fine. Points reset after a clean period.
Free Resources
I built a free MTD Readiness Checker at landolio.com/tools/mtd-readiness-checker.html — answers 8 questions and tells you exactly what you need to do.
There's also a full MTD timeline and quarterly submission dates on the UK Tax Calendar 2026-27.
If you want a complete step-by-step walkthrough, the MTD Readiness Toolkit covers registration, software setup, and first submission (£14).
The window for getting this sorted without stress is right now. The first deadline is 5 August 2026. That sounds far away until it isn't.
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