Sole traders and landlords whose gross self-employment and property income was over £50,000 on their 2024/25 return have been in Making Tax Digital for Income Tax since 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028, and anyone in it keeps digital records, sends quarterly updates and files the return through software.
Who is in scope
It depends on your qualifying income: broadly, your gross income from self-employment and property combined, as shown on an earlier tax return.
| From | Qualifying income above |
|---|---|
| 6 April 2026 | £50,000 (based on your 2024/25 return) |
| 6 April 2027 | £30,000 (based on your 2025/26 return) |
| 6 April 2028 | £20,000 (based on your 2026/27 return) |
Partnerships will join later, on dates HMRC has not yet set.
What it involves
- Keeping records in compatible software, or spreadsheets linked through bridging software.
- Sending a summary of income and expenses to HMRC every quarter, by 7 August, 7 November, 7 February and 7 May. For 2026/27 there are no penalty points for a late quarterly update, but all four must be sent before you can file the return, and points apply from 2027/28.
- Submitting your tax return through the same software by 31 January after the tax year ends. This replaces your usual Self Assessment return and must include all your income and gains, not just your business and property income.
What to do now
If you were in from 6 April 2026, your first quarterly update was due by 7 August 2026 and the next is due by 7 November 2026. Otherwise, check your qualifying income against the thresholds, choose software early, and decide who will send the quarterly updates. If you cannot use digital tools, for example because of age, disability or location, you can apply to HMRC for an exemption. We can confirm whether you are in scope and send the updates for you. See our guide to the 7 November quarterly update and how we help landlords, or book a consultation.
This article is general information about UK tax, based on the law and HMRC practice at the date shown above. It is not advice, and reading it does not make you our client. Tax rules change and their effect depends on your circumstances, so please speak to us before acting on it.