From April 2026, landlords and the self-employed face new rules under Making Tax Digital (MTD) for Income Tax.
The new regime will apply to anyone with turnover above £50,000 from self-employment and property income combined. Individuals will be required to send quarterly updates of income and expenses to HMRC and submit a tax return through compatible software at year end.
These rules will then extend further in 2027 to incomes over £30,000 and again in 2028 for incomes over £20,000.
Upcoming changes
From 6th April 26, affected taxpayers will need to use MTD-compatible software to keep digital records, send quarterly updates of income and expenses directly to HMRC, and continue to file a self-assessment return for 2025/26, with MTD taking over fully thereafter.
Quarterly updates are not full tax returns, but simple, unadjusted summaries generated by software. Corrections can be made in future submissions.
What this means for you
For many, self-assessment means scrambling each January to find receipts and reconcile income. HMRC believes MTD will reduce errors, improve efficiency, and help taxpayers budget more effectively by offering real-time tax visibility.
The benefits of this include:
- Less admin hassle: software can do the heavy lifting on recording income and expenses.
- Easier record keeping: simply upload receipts or enter figures as you go, without the January rush.
- Better visibility: having an idea of your tax bill during the year helps you plan ahead and avoid unexpected tax bills.
Key dates
Here are the critical dates to put in your diary:
- 31 January 2026: Submit self-assessment tax return for 2024-25 tax year
- 06 April 2026: Start keeping records using MTD for Income Tax software
- 07 August 2026: First quarterly update due
- 07 November 2026: Second quarterly update
- 31 January 2027: Submit self-assessment tax return in usual way for 2025-26
- 07 February 2027: Third quarterly update
- 07 May 2027: Fourth quarterly update
- 07 August 2027: First quarterly update for 2027-28
- 07 November 2027: Second quarterly update
- 31 January 2028: Submit first full MTD tax return for 2026/27 directly via software
- 07 February 2028: Third quarterly update
- 07 May 2028: Fourth quarterly update
How you can prepare
HMRC is urging taxpayers to test the system early through its voluntary pilot scheme, with more than 1,300 already submitting updates. Free and low-cost software options are available, as well as advanced solutions for those seeking more features.
It is worth getting prepared early. By looking at your record-keeping systems now and exploring software options, the shift to MTD can be much smoother. And remember, you do not need to work through the changes alone – our team is here to help you get set up and feel confident about the new process.
Get in touch today to discuss how we can support you through MTD for Income Tax.