Making Tax Digital 2026: What UK Self-Employed and Landlords Need to Know

If you're self-employed or a landlord earning over £50,000, Making Tax Digital (MTD) for Income Tax is coming into effect from April 2026, and it will change the way you manage and report your tax affairs.

This guide explains clearly what MTD is, who it applies to, what the key deadlines are, and what you need to have in place.

What Is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC's initiative to modernise the UK tax system. Rather than filing a single annual Self Assessment return, affected taxpayers will be required to:

• Maintain digital records of their income and expenses throughout the year

• Submit quarterly updates to HMRC via MTD-compatible software

• File a final end-of-year declaration by 31 January, covering any additional income such as dividends, investment income, or child benefit.

The aim is to give both taxpayers and HMRC a more accurate, real-time picture of tax liabilities, reducing errors and the annual year-end panic.

Who Does MTD for Income Tax Apply To?

MTD is mandatory if you are self-employed, a landlord, or a combination of both and your combined gross income from these sources exceeded £50,000 in the 2024/25 tax year.

MTD for Income Tax is being rolled out in stages based on income thresholds:

• April 2026 — Income over £50,000

From 6 April 2026, MTD is mandatory if your combined gross income exceeded £50,000 in the 2024/25 tax year.

• April 2027 — Income over £30,000

From April 2027, the threshold drops to £30,000 for the 2027/28 tax year onwards.

• April 2028 — Income over £20,00

From April 2028, MTD will extend to anyone earning over £20,000.

Important note: the income figure that counts is your gross income, that is, before deducting any business expenses or tax allowances.

Who Is Exempt From MTD?

You will not need to comply with MTD for Income Tax if:

• Your gross income from self-employment and property is below the relevant threshold

• You are digitally excluded due to age, disability, location or religious reasons

• HMRC has confirmed a specific exemption applies to your circumstances

If you are currently below the threshold but anticipate your income growing, it is worth understanding the rules now so you are prepared in advance.

What Are the Quarterly Reporting Periods?

Under MTD, you will need to submit four quarterly updates each year. The standard quarters are:

• 6 April to 5 July - deadline 5 August

• 6 July to 5 October - deadline 5 November

• 6 October to 5 January - deadline 5 February

• 6 January to 5 April - deadline 5 May

It is worth noting that quarterly updates are summaries of income and expenses and not tax calculations. They do not result in a tax payment being due. The final tax liability is still settled through the year-end declaration, with payment due by 31 January and/or 31st July if you have payments on account.

What Software Do You Need?

You cannot submit MTD quarterly updates directly through the HMRC website. You will need HMRC-recognised software that can connect to HMRC's systems. Widely used options include Xero, QuickBooks, Dext and Sage, though the right choice depends on your business type and how you currently manage your records.

Your software will need to be set up correctly from the start to ensure your records are structured in the way HMRC requires.

Do You Need to Sign Up?

Yes. MTD is not automatic. You will need to register for MTD for Income Tax through your HMRC online account. HMRC has indicated that some taxpayers may be enrolled automatically, but it is important not to rely on this. You should confirm your registration well before your start date.

Key Dates at a Glance

• 6 April 2026 — MTD mandatory for income over £50,000

• 6 April 2027 — Threshold reduces to £30,000

• 6 April 2028 — Threshold reduces to £20,000

• 31 January 2027 — First year-end declaration deadline under MTD (for 2026/27)

  
  

How AccountingBliss Can Help

At AccountingBliss, we work with self-employed clients and landlords across Derby, Coventry and the Midlands to make MTD straightforward from the outset. We can:

• confirm whether and when you are affected

• recommend the right software for your situation

• handle your quarterly submissions

• complete your year-end declaration.

  
  

If you want to understand exactly what April 2026 means for you, get in touch for a free 30-minute consultation or head over to our Making Tax Digital page for more information.

AccountingBliss; protecting profits and wellbeing. Derby and Coventry accountants helping small business owners and landlords navigate tax with clarity and confidence.