Last reviewed: 30 September 2026. Tax thresholds and dates are set by HMRC and may change — always check the latest guidance on GOV.UK.
The short version
Making Tax Digital for Income Tax replaces the once-a-year Self Assessment tax return with a digital, quarterly way of reporting. Instead of scrambling to file one return after the tax year ends, you keep digital records and send HMRC a short summary of your income and expenses every three months, then confirm everything once at the end of the year.
It applies to self-employed sole traders and landlords whose income is above a set threshold. It is being introduced in phases between 2026 and 2028 based on how much you earn.
Who has to do it — and when
MTD for Income Tax is being rolled out in phases. The threshold is based on your qualifying income — your combined gross (pre-expenses) income from self-employment and property in a tax year.
| From | Qualifying income | Who this affects |
|---|---|---|
| 6 April 2026 | More than £50,000 | Higher-income sole traders & landlords |
| 6 April 2027 | More than £30,000 | Mid-income sole traders & landlords |
| 6 April 2028 | More than £20,000 | Most remaining sole traders & landlords |
Good to know
The threshold looks at your turnover, not your profit. If you have both a business and rental income, you add the two gross figures together to see which phase you fall into. HMRC uses your most recent tax return to decide whether you're in scope.
Landlords: no furnished vs unfurnished split
For the tax years EasyTaxer supports (2026‑27 onwards), there's no separate tax treatment for furnished and unfurnished property — so you don't need to sort your lettings into one bucket or the other. The Furnished Holiday Lettings (FHL) regime was abolished from April 2025, and the old wear-and-tear allowance was replaced years before that. You report your UK property income and expenses as a single rental business, whatever your furnishings.
Video: Who's next for Making Tax Digital: the £30,000 threshold from April 2027
Text version of this video
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The short answer
From 6 April 2027, Making Tax Digital for Income Tax applies to sole traders and landlords whose qualifying income was over £30,000 in the 2025 to 2026 tax year.
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The thresholds, year by year
Over £50,000 in 2024 to 2025 meant starting in April 2026. Over £30,000 in 2025 to 2026 means April 2027. And over £20,000 in 2026 to 2027 means April 2028.
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What counts as qualifying income
Qualifying income is your total income from self-employment and property, before expenses. That's turnover, not profit. Other income, like a salary, dividends or pensions, doesn't count. HMRC's own example: £25,000 of rent, plus £27,000 of self-employment income, is £52,000 of qualifying income.
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Letters, and checking for yourself
HMRC checks your tax return each year, and writes to you if your qualifying income is over the threshold. But if you don't get a letter, it's still your responsibility to check. HMRC's tool on GOV.UK tells you if and when you need to start, and whether you may be exempt.
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Getting ready
If you'll start in April 2027, you still send your 2026 to 2027 tax return the usual way. To get ready, HMRC's guidance says to follow its steps and sign up, including choosing and authorising your software.
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EasyTaxer is recognised by HMRC for Making Tax Digital for Income Tax. You'll find it at easytaxer.com.
What you actually have to do
Under MTD for Income Tax there are really only four moving parts. EasyTaxer handles all of them.
Keep digital records
Record your business income and expenses digitally — in software like EasyTaxer rather than on paper or in a shoebox of receipts. You can type entries in, import a spreadsheet, or (later) connect a bank feed.
Send quarterly updates
Four times a year, send HMRC a running summary of your income and expenses, once each three-month quarter ends. Each one covers the tax year so far, from 6 April to the end of that quarter. These are cumulative totals, not a final figure — they give HMRC (and you) an in-year view of how you're doing. See our how-to guide.
Finalise each income source
After the tax year ends, you confirm the final figures for each business or property — adding any year-end adjustments such as allowances or accounting changes. HMRC no longer requires a separate end-of-period statement; these adjustments now feed straight into your final declaration.
Submit your final declaration
Finally, you bring together all your income — business, property, plus anything else like employment, savings or dividends — and confirm it's complete and correct. This final declaration (also called crystallisation) replaces the old annual Self Assessment return and tells HMRC your total tax bill for the year.
More on keeping digital records: What records do you need to keep? Not sure Making Tax Digital applies to you? See Can I get an exemption from MTD?
The deadlines
Each quarterly update has a deadline one month and a few days after the quarter ends, and each update covers the tax year so far. With standard update periods, which follow the tax year (6 April – 5 April), the quarter deadlines are:
| Deadline | Quarter | Update covers |
|---|---|---|
| 7 August | Q1 | 6 Apr – 5 Jul |
| 7 November | Q2 | 6 Apr – 5 Oct |
| 7 February | Q3 | 6 Apr – 5 Jan |
| 7 May | Q4 | 6 Apr – 5 Apr |
In the words of GOV.UK's Send quarterly updates guidance, each time you send a quarterly update “it will cover from the start of the tax year to the end of the update period, not just the previous three months. This means you can correct your records without having to resend previous updates.”
If you use calendar update periods instead (1 April – 31 March, each period ending on the last day of a month), your updates cover 1 April – 30 June, 1 April – 30 September, 1 April – 31 December and 1 April – 31 March. The deadlines are the same.
Your final declaration for a tax year is due by 31 January the following year — the same familiar Self Assessment deadline. EasyTaxer tracks all of these for you and shows your next deadline on your dashboard, so nothing creeps up.
Why is HMRC doing this?
HMRC's aim is to reduce errors and make reporting more timely. Keeping records digitally and submitting more often is meant to spread the work across the year, cut down on last-minute mistakes, and give you a clearer running picture of what you'll owe. For you, the practical upside is no more once-a-year scramble — and, with the right software, very little extra effort.
How EasyTaxer helps
EasyTaxer is HMRC-recognised software built specifically for MTD for Income Tax. It keeps your digital records, calculates your estimated tax as you go, and submits your quarterly updates, year-end figures, and final declaration directly to HMRC's APIs — all from one account.
- Almost every HMRC income type in one place — self-employment, UK and overseas property, employment, savings interest, dividends, pensions, CIS, state benefits, foreign income and more. Capital gains and other income are not yet available: HMRC has not published a 2026-27 version of either.
- Real-time tax estimates so there are no surprises.
- Deadline tracking so you always know what's due next.
- Direct, secure submission to HMRC — no paper, no re-keying.
Common questions
Do I still file a Self Assessment return?
Once you're in MTD for Income Tax, your final declaration replaces the annual Self Assessment return. You report through quarterly updates during the year and confirm everything once at year-end.
What if my income is below the threshold?
You're not mandated yet, but you can choose to join voluntarily. Many people sign up early to spread the admin and get used to the new way of working before their phase begins.
Can my accountant do this for me?
Yes. Agents can manage MTD for Income Tax on your behalf. See our guide for accountants & agents.
Is there jargon I should know?
Plenty — but it's simpler than it sounds. Our plain-English glossary defines every term you'll meet.
Ready to get set up?
It takes minutes to register and connect to HMRC. Free to set up and explore — pay only when you make your first submission.