MTD starts Monday: what to do if you still haven't set up software

Making Tax Digital for Income Tax starts Monday 6 April.

If you're a sole trader or landlord earning over £50k and you haven't sorted software yet — this is your weekend plan.

What needs to be done before Monday

1. Pick MTD-compatible software — QuickBooks, FreeAgent, Xero, Sage, or free HMRC-approved options. Most have a free trial.
2. Link it to your HMRC credentials — you'll need your Government Gateway login and UTR
3. Enter income/expenses from 6 April year-to-date (or import from spreadsheet if your software supports it)
4. Submit your first quarterly update — covers 6 Apr–5 Jul 2026, due by 5 August

If you miss the 6 April start

HMRC uses a points system. One missed quarterly submission = one point. Four points = £200 fine. Points reset after 24 months of clean compliance.

So one late quarter won't bankrupt you — but it does start a clock you'd rather not start.

Common traps

CIS subcontractors: You're a sole trader for MTD purposes. Your contractor deducting CIS tax doesn't change your obligations.

Landlords with a side business: Both income streams count toward the £50k threshold combined.

Jointly owned property: Each owner is assessed separately, not jointly.

The £50k threshold — how it's calculated

It's your gross self-employed/rental income, before any deductions. If you earned £52k gross and spent £20k on costs, you're in scope. Net profit doesn't move the threshold.

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I put together an MTD Readiness Toolkit covering the full setup process, quarterly submission workflow, and record-keeping formats. If you'd rather have a checklist than piece it together from HMRC guidance, that's what it's for.

Six days. You can still get this done properly.