Making Tax Digital for Income Tax: who, when and what
From April 2026 many sole traders and landlords have to keep digital records and send HMRC a short update every quarter, as well as the end-of-year return.
Updated 28 September 2026
When it applies to you
| Qualifying income over | Based on your return for | MTD from |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
What "qualifying income" means
It's your total gross income (turnover, before expenses) from self-employment and from UK and overseas property, added together. A sole trader turning over £35,000 with a £20,000 profit is judged on the £35,000. Salary from a job, pensions, savings interest and dividends don't count. If you own property jointly, count your share of the rent.
What you have to do
- Keep digital records of each income and expense for each business and property.
- Send a quarterly update of your totals from MTD-compatible software. It's a summary, not a tax return, and no tax is due with it.
- Submit a final declaration by 31 January after the tax year, which replaces the usual Self Assessment return. Payment dates don't change.
Quarterly update deadlines
| Quarter | Update due |
|---|---|
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
You can choose calendar quarters (ending 31 March, 30 June and so on) in your software instead.
Can you use a spreadsheet?
Yes. You can keep your records in a spreadsheet and send the quarterly figures to HMRC through bridging software, which reads the totals from the sheet and submits them. HMRC lists compatible products, several of them free for simple cases. What you can't do is type the figures into HMRC's website by hand.
Penalties
MTD uses a points system. Each late quarterly update earns a point, and a £200 penalty applies once you reach four points. Points expire if you then keep to the deadlines for a period. Late payment penalties and interest are separate.
Exemptions
You can apply for an exemption if you can't reasonably use digital tools, for example because of age, disability or where you live. Some groups are also exempt or deferred by HMRC. If you're unsure, check HMRC's "Find out if you need to use MTD for Income Tax" service on GOV.UK.
MTD-ready records in a spreadsheet
Our UK trackers keep income and expenses by quarter, so the four totals you send through bridging software are ready when the deadline comes. Excel + Google Sheets.
See the UK templatesGeneral information, not tax advice. Rules are set by HMRC and can change.