Making Tax Digital for Income Tax: free checklist

A 5-page checklist for sole traders and landlords. Find out if and when you have to join, see every first-year deadline, and follow a simple 4-week plan to get ready.

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2026/27 edition · Updated 15 October 2026 · For England, Wales and Northern Ireland

Written by Owen Nelson, Partner at Nelson Shepherd

What's inside

  • Does it apply to you? The income thresholds, how to work out your qualifying income, and the points people often miss.
  • Your first year at a glance. Every quarterly deadline for 2026/27 and the date of your first MTD tax return.
  • The new penalties. How points work, the first-year breathing space, and paying late.
  • A 4-week plan. A tick-box checklist to choose software, set up your records and build a routine.
  • Five common mistakes, and the questions to ask before you pick an accountant or software.

The key points in brief

Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. It extends to those over £30,000 from April 2027, and over £20,000 from April 2028.

Qualifying income is income, not profit. Add together your self-employment sales and your rental income before any expenses. A decorator with £35,000 of sales who also rents out a flat for £18,000 has qualifying income of £53,000, even if the profit is much lower.

Once you've joined, you keep digital records in HMRC-recognised software and send a quarterly update by the 7th of the month after each quarter ends. The updates are summaries, not payments. Your tax is still due on 31 January and 31 July.

First-year breathing space: HMRC won't give penalty points for late quarterly updates due up to 7 May 2027. From the 2027/28 year, each missed deadline earns a point, and 4 points means a £200 penalty.

The checklist turns all of this into a step-by-step plan you can print and tick off. For the full background, read our online guide to Making Tax Digital for Income Tax.

Common questions

Do I have to use Making Tax Digital for Income Tax?

You have to join if you're a sole trader or landlord and your qualifying income is over £50,000 for 2024 to 2025 (start 6 April 2026), over £30,000 for 2025 to 2026 (start 6 April 2027) or over £20,000 for 2026 to 2027 (start 6 April 2028). Qualifying income is your total self-employment and property income before expenses.

When are the MTD quarterly updates due in 2026/27?

For the standard quarters, updates are due on 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. The tax return for 2026 to 2027 is due by 31 January 2028.

Will I get a penalty for a late quarterly update in the first year?

No penalty points are given for late quarterly updates due in the first 12 months, up to 7 May 2027. You still have to send every update, and a late 2026 to 2027 tax return can still earn a point.

How many penalty points lead to a fine?

Under MTD, each missed deadline earns one point. Once you reach 4 points, HMRC charges a £200 penalty, and another £200 for each late submission after that.

Is a quarterly update a tax payment?

No. A quarterly update is a summary of your income and expenses. You still pay tax on 31 January and 31 July.