by Asim Abbas
12 November 2026 
Making Tax Digital for Income Tax: who must sign up in 2026 and 2027
Making Tax Digital for Income Tax: who must sign up in 2026 and 2027
Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000.
- Over £50,000 of qualifying income in 2024/25: in MTD from 6 April 2026.
- Over £30,000 in 2025/26: in MTD from 6 April 2027.
- Over £20,000: from April 2028.
- Quarterly updates plus a final declaration replace the usual tax return.
The next group joins in April 2027. Here is how to tell if you are in, what you have to do and when.
Who must use Making Tax Digital
MTD applies to sole traders and landlords whose qualifying income is over the threshold. Qualifying income is your total self-employment and property income before expenses, not your profit. Employment income, pensions and dividends do not count.
- From 6 April 2026: qualifying income over £50,000 in the 2024/25 tax year.
- From 6 April 2027: qualifying income over £30,000 in the 2025/26 tax year.
- From 6 April 2028: qualifying income over £20,000.
Partnerships and limited companies are not included at this stage.
Check your MTD start date
Our Making Tax Digital page explains the thresholds and our packages from £25 a month.
What you have to do
- Keep digital records of income and expenses in MTD-compatible software or a bridging tool.
- Send a quarterly update to HMRC for each business: quarters end on 5 July, 5 October, 5 January and 5 April, with updates due by the 7th of the following month.
- Submit a final declaration by 31 January after the tax year, which replaces the normal Self Assessment return.
Penalties and the soft landing
MTD uses a points-based system for late submissions and new late payment penalties. HMRC is giving a soft landing on late quarterly updates in the first year, and the Budget on 28 October 2026 announced that people joining in April 2027 will not get penalty points for late submission of their first four quarterly updates for 2027/28.
How to get ready for April 2027
Check your 2025/26 qualifying income as soon as the year closes. If it is over £30,000, choose software, open a business bank account if you do not have one and start keeping digital records before April. We set up the software and send the quarterly updates for you from £25 a month. Drivers, see our accountants for Uber and taxi drivers; landlords, see property accountants.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179What should I do next?
Add up turnover and rents for 2025/26.
We work with Xero, QuickBooks, FreeAgent, Sage and Pandle.
Packages from £25 a month including VAT.
Frequently Asked Questions
When did Making Tax Digital for Income Tax start?
6 April 2026, for sole traders and landlords with qualifying income over £50,000.
Is qualifying income my profit?
No. It is your total self-employment and property income before expenses.
Do I still file a tax return under MTD?
You send quarterly updates and a final declaration by 31 January, which replaces the usual return.
Are there penalties for late quarterly updates?
MTD uses penalty points, but there is a soft landing at the start, and the October 2026 Budget announced no points for the first four late updates for those joining in April 2027.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
