What’s Going Live Now?
As of 6 April 2026, UK sole traders and landlords with over £50,000 in ‘qualifying income’ (from self-employment and property) must join Making Tax Digital for Income Tax (MTD ITax). This includes using compatible software, keeping digital records, sending quarterly updates of income/expenses—even though the full tax return still goes through Self Assessment by 31 January after the end of the tax year. (gov.uk)
Phasing & Thresholds
- 6 April 2026: >£50,000 qualifies.
- 6 April 2027: threshold drops to £30,000.
- 6 April 2028: threshold drops further to £20,000.
This phased rollout gives time for businesses to adjust. (gov.uk)
Compliance Checklist
| Requirement | What You Need to Do |
|---|---|
| Digital records | Use Making Tax Digital-compatible software to record income & expenses; property income included. |
| Quarterly updates | Submit summaries every three months. Schedule them now in your calendar/software. |
| Filing annual Self Assessment | Although quarterly updates replace parts of data gathering, full SA return still needed by 31 Jan each year. |
| Penalties | Note: no penalty points applied for late quarterly updates in the first year (2026-27). After that, the new penalty-point system applies. (gov.uk) |
Practical Tips & Examples
- Example: If your gross property + self-employed income in 2024-25 was £55,000, you must start using MTD-ITax from 6 April 2026. If you start new sources mid-year, rules differ. (gov.uk)
- Case: Landlord renting extra property → that income adds to existing property business; treated as part of existing scope, so included in digital record obligations. (gov.uk)
Staying Ahead
- Choose software well before deadlines—ensure compatibility and check provider support.
- Track all income & expense documents over time; avoid last-moment scramble.
- Consult accountants or tax agents early to understand penalty changes & reporting schedules.