Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The next wave arrives on 6 April 2027, and the Budget confirmed the timetable.
Who is affected
You need to join from 6 April 2027 if you are a sole trader or landlord whose qualifying income was over £30,000 in the 2025/26 tax year. Qualifying income means gross business and property income before expenses, not profit. A third wave brings in those over £20,000 (based on 2026/27) from 6 April 2028. Partnerships are not yet included.
HMRC writes to people who are caught, but do not wait for the letter. Check your 2025/26 figures once your return is done.
What you have to do
- Keep digital records in MTD-compatible software.
- Send an update to HMRC every quarter.
- Submit a final declaration after the year end, replacing the old Self Assessment return.
Key dates
- 6 April 2027: your first MTD tax year starts.
- 7 August 2027: first quarterly update due.
Penalty soft landing
If you join in April 2027, you will not get late submission penalty points for your first four quarterly updates in 2027/28. You still have to send them. Exemptions exist for some people, for example those who cannot use digital tools for reasons of age, disability or location, but you must apply.
How to prepare
- Work out your 2025/26 qualifying income.
- Choose software that works with MTD and move your bookkeeping into it before April.
- Keep receipts and records up to date monthly so quarterly updates take minutes, not days.
We can set up the software, run your quarterly updates and file your final declaration. Get in touch to be ready before April.
This is general information, not personal advice. Check GOV.UK for the latest rules.
