HMRC confirms Making Tax Digital for Income Tax dates: what you need to do now

HMRC has confirmed the timetable for Making Tax Digital for Income Tax Self Assessment, also known as MTD for Income Tax. If you are a sole trader, landlord, or receive income from both self-employment and property, this is something you need to prepare for before the rules affect you.

The Autumn Statement 2023 confirmed the phased introduction of MTD for Income Tax from April 2026. Since then, the timetable has been extended further, with more taxpayers expected to come within the rules from April 2028.

From 6 April 2026, you will need to use MTD for Income Tax if your qualifying income from self-employment and property was more than £50,000 in the 2024 to 2025 tax year.

From 6 April 2027, the rules will apply if your qualifying income was more than £30,000 in the 2025 to 2026 tax year.

From 6 April 2028, the rules are expected to apply if your qualifying income was more than £20,000 in the 2026 to 2027 tax year.

This is a major change for many Self Assessment taxpayers. HMRC reported that more than 12 million people were expected to file a Self Assessment tax return for the 2024 to 2025 tax year, so the move towards digital record keeping will affect a large number of individuals and small businesses across the UK.

What Making Tax Digital for Income Tax means

Making Tax Digital for Income Tax changes how you keep records and report income to HMRC. Instead of dealing with everything once a year through the usual Self Assessment process, you will need to keep digital records and use compatible software to send updates.

If you already use bookkeeping services or cloud accounting software, you may already be partly prepared. If your records are still kept on paper, spreadsheets, or across several different systems, now is the time to review how you manage your finances.

Under MTD for Income Tax, you will usually need to:

• Quarterly: Send updates to HMRC showing your income and expenses.
• Digitally: Keep records in compatible software or a linked digital system.
• Annually: Submit your final tax position through compatible software.
• Practically: Keep your records up to date during the year, not just before the 31 January deadline.

The aim is to reduce errors and make tax reporting more regular. In practice, it also means you need a better routine for recording income, expenses, receipts and bank transactions.

Who will be affected first?

The first group affected will be sole traders and landlords with qualifying income of more than £50,000. This includes income from self-employment, property, or a combination of both.

For example, if you earn £35,000 from self-employment and £18,000 from rental income, your combined qualifying income may take you over the £50,000 threshold. That could bring you into MTD from 6 April 2026.

This is particularly important for landlords. Rental income can quickly push you over the threshold, especially if you own more than one property. If you need support with rental income, expenses and tax planning, working with a landlord accountant can help you understand your position before the rules apply.

You should not wait until the last minute to check whether you are affected. HMRC may contact taxpayers who appear to meet the threshold, but it remains your responsibility to understand your obligations and prepare in time.

Why the 2024 to 2025 tax return matters

Your 2024 to 2025 Self Assessment tax return is important because HMRC will use it to assess whether you need to join MTD from 6 April 2026. If your qualifying income for that year is more than £50,000, you may be in the first phase.

That means accuracy matters. If your records are unclear, incomplete or poorly categorised, it may be harder to understand whether you are within the rules. Using personal tax return services can help ensure your income, expenses and property figures are reported correctly.

It also gives you time to plan. If your income is close to the threshold, you should review your records, software and tax position before April 2026. Leaving it until the first quarterly update deadline could create unnecessary pressure.

What are the quarterly update deadlines?

If you join MTD for Income Tax from 6 April 2026, you will need to keep digital records from the start of the 2026 to 2027 tax year. Your quarterly updates will then be sent during the year using compatible software.

For the 2026 to 2027 tax year, the first quarterly update deadline is expected to be 7 August 2026. Later quarterly deadlines are expected to fall in November, February and May.

This means you will need a system that keeps your records current. Waiting until January to organise invoices, receipts and bank transactions will no longer be practical.

If you use Xero bookkeeping services, you may find it easier to keep your records clean during the year. Xero can help track income, reconcile bank transactions and prepare useful reports. However, software alone is not enough. You still need the right setup, correct categories and regular checks.

How this affects landlords and property income

Property income is a key part of MTD for Income Tax. If you rent out residential or commercial property, your rental income will count towards your qualifying income threshold.

This can create extra complexity. You may need to track repairs, mortgage interest, service charges, letting agent fees, insurance, utilities and other allowable costs. If you own property through a limited company, you may also have separate Corporation Tax, company accounts and Companies House responsibilities.

FHP Accounting specialises in property-related finance, so support from property tax accountants can be useful if your rental income, allowable expenses or property structure needs a more detailed review.

If you manage commercial property, you may also need joined-up reporting for rent collection, service charges, VAT, deposits and management accounts. FHP’s commercial property management accounting service can help keep these records more organised.

What you should do before April 2026

The best time to prepare is before you are forced to use the system. MTD is not just a filing change. It affects how you record transactions, review figures and manage deadlines throughout the year.

Start with these practical steps:

• Check: Review your self-employment and property income for 2024 to 2025.
• Confirm: Work out whether your qualifying income is above £50,000.
• Review: Look at how your records are currently kept.
• Choose: Decide whether your software is suitable for MTD.
• Organise: Set a monthly routine for checking transactions and receipts.
• Ask: Speak to your accountant if you are unsure.

If your business is growing, you may also need wider finance support. An outsourced finance department can help with bookkeeping, payroll, VAT, reporting and planning without the cost of building a full in-house finance team.

What about VAT and other tax obligations?

MTD for VAT already applies to VAT-registered businesses. The VAT registration threshold is currently £90,000, so businesses close to this level should also keep an eye on taxable turnover.

If you are managing both VAT and MTD for Income Tax, your reporting can become more complex. You may have VAT returns, MTD income tax updates, annual accounts and tax returns running alongside each other. Support with VAT return services can help reduce the risk of missed deadlines or incorrect submissions.

Limited companies are not brought into MTD for Income Tax in the same way as sole traders and landlords. However, they still have company accounts and Corporation Tax responsibilities. If your structure includes a limited company, you may also need support with company tax returns and annual statutory accounts.

Why early preparation matters

The first year of any new reporting system can feel stressful if everything is left too late. MTD will be much easier if your records are already digital, your software is ready and your accountant understands how your income is structured.

It is also worth reviewing payroll if you employ staff, because PAYE, National Insurance and pension duties already depend on accurate reporting. If you want this handled alongside your wider finance function, FHP Accounting also provides payroll services.

The main benefit of preparing early is control. You can see your tax position sooner, understand your cash flow more clearly and avoid rushing to fix problems close to a deadline.

For many sole traders and landlords, this may also be a good opportunity to tidy up old habits. If bank reconciliations are behind, receipts are missing or expenses are not being recorded properly, MTD will make those weaknesses harder to ignore.

Speak to FHP Accounting about MTD for Income Tax

MTD for Income Tax is being introduced in stages, but the practical work should start now. If your self-employment or property income is above £50,000, you may need to be ready by 6 April 2026. If your income is above £30,000 or £20,000, the later phases may still affect you soon.

FHP Accounting can help you check whether the rules apply, review your records, choose suitable software and prepare for quarterly updates. If you are unsure where to start, contact FHP Accounting today and speak to a friendly team that can guide you through the next steps.

Kellee Quigley

I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.