MTD Starts in 6 Days — Here's What UK Freelancers Actually Need to Do

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) goes live on 6 April 2026. That's 6 days from now.

If you're a UK sole trader or landlord earning over £50,000, you're in scope. No extensions this time — HMRC has delayed this three times already and they're not blinking again.

What Actually Changes

Right now, you file one self-assessment return per year. From April 6th:

• Quarterly updates — submit income and expenses to HMRC every 3 months
• Digital records — spreadsheets are fine, but they must connect to MTD-compatible software
• End of period statement — annual summary replacing part of your tax return

The £50k Threshold Trap

Your qualifying income is your gross turnover, not profit. So if you invoice £55k but only take home £30k after expenses — you're still caught.

If you're both a sole trader AND a landlord, those incomes are combined.

What Software Do You Need?

HMRC maintains a list of compatible software. Free options exist (Sage, Clear Books) but most have limitations.

The real cost isn't the software — it's the time spent doing quarterly submissions instead of actual work.

The Penalty Regime

HMRC is introducing a points-based penalty system:

• Miss a quarterly deadline = 1 point
• Accumulate 4 points = £200 fine
• Points expire after 24 months of compliance

Late payment interest applies from day 1. A 5% surcharge kicks in at 15 days late.

What To Do This Week

1. Check your 2024/25 turnover — if it's over £50k, you're in scope from Sunday
2. Sign up for MTD-compatible software — even if you already use accounting software, it needs to be MTD-registered
3. Set up your quarterly calendar — first submission covers April-July 2026, due by 7 August
4. Talk to your accountant — if you have one. If you don't, now's the time

Resources

I've been building free tools for UK freelancers at Landolio — we've got a Self-Assessment Recovery Kit for anyone who's behind on their tax admin, plus calculators for day rates, late payment interest, and more.

The MTD deadline is real this time. Don't be one of the 860,000 sole traders who gets caught unprepared.