Updated 15 October 2026 · For England, Wales and Northern Ireland
What is Making Tax Digital for Income Tax?
Making Tax Digital (often shortened to MTD) changes how you report self-employment and property income to HMRC. Instead of one tax return a year, you:
- keep your income and expense records in compatible software,
- send HMRC a short summary every three months (a "quarterly update"), and
- finish the year with a tax return submitted from the same software.
Quarterly updates are summaries of your income and expenses. They are not tax payments. You still pay your tax on the usual dates, 31 January and 31 July.
MTD threshold: who has to use it, and when
It depends on your qualifying income: your total self-employment and property income before any expenses or allowances. HMRC looks at an earlier tax return to decide when you start.
| If your qualifying income was over… | in the tax year… | you start on… |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Partnerships will have to join later, but HMRC hasn't set a date yet. Some people can get an exemption, for example if they can't use a computer because of age, disability or where they live.
MTD for Income Tax quarterly deadlines
For most people the quarters follow the tax year, and each update is due by the 7th of the month after the quarter ends. For 2026 to 2027 that means:
| Quarter | Update due |
|---|---|
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 July to 5 October 2026 | 7 November 2026 |
| 6 October 2026 to 5 January 2027 | 7 February 2027 |
| 6 January to 5 April 2027 | 7 May 2027 |
| Tax return for the year | 31 January 2028 |
Late updates and returns can lead to penalties under HMRC's points-based system. The rules have changed during the rollout, so check the latest position or ask us.
What you should do now
- Check your qualifying income for 2024 to 2025 and 2025 to 2026. Add up all self-employment and rental income before expenses.
- Choose compatible software. Xero and several other packages are recognised by HMRC. We can set it up for you.
- Go digital now, even if you start next year. Moving mid-year is harder than starting clean on 6 April.
- Decide who sends the updates. You can send them yourself, or we can handle them as part of a monthly package.
Common questions
What is the threshold for Making Tax Digital for Income Tax?
You must join if your qualifying income was over £50,000 in 2024/25 (start 6 April 2026), over £30,000 in 2025/26 (start 6 April 2027) or over £20,000 in 2026/27 (start 6 April 2028).
What counts as qualifying income for MTD?
Your total self-employment and property income before any expenses. Employment income, pensions and dividends don't count.
Does Making Tax Digital apply to landlords?
Yes. Rental income counts towards the threshold, so landlords with qualifying income over the limit must keep digital records and send quarterly updates. If you own a property jointly, only your share counts.
When are the MTD quarterly deadlines?
For 2026/27, updates are due by 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027, with the tax return due by 31 January 2028.
Is there free software for MTD for Income Tax?
HMRC says free products are available for people with simple tax affairs, though they may have limits, such as on the number of transactions. Use HMRC's software finder to compare options.
What are the penalties for MTD for Income Tax?
Each late submission earns a penalty point, and 4 points means a £200 penalty. There are no points for late quarterly updates in the first year, up to 7 May 2027.
How we can help
We set up your software, check your records each quarter and send the updates for you, so you don't have to think about the 7th of the month. If you're not sure whether MTD applies to you, book a free review call and we'll tell you.
Sources: GOV.UK, Check if you're eligible for Making Tax Digital for Income Tax, and the MTD for Income Tax timeline. This guide is general information, not advice for your situation.