Qualifying income in 2024/25
Over £50,000
MTD start date
6 April 2026HMRC guidance, explained by Avona
Making Tax Digital.
Let’s make it make sense.
ONLY£15A MONTHWhat changes, when you need to start, and what to do next. A practical guide to HMRC’s Making Tax Digital for Income Tax rules for sole traders and landlords.
An independent Avona guide, based on HMRC advice. Reviewed .
Start with your numbers
When do you need to use MTD?
Your start date depends on your qualifying income in a particular tax year. That means your combined self-employment and property income before expenses. Check exemptions as well as the threshold.
Qualifying income in 2025/26
Over £30,000
MTD start date
6 April 2027Qualifying income in 2026/27
Over £20,000
MTD start date
6 April 2028A smaller, steadier routine
Keep records. Send updates. Finish the year.
Keep your records digitally
Record business income and expenses in compatible software as you go. Give receipts and invoices a regular home, instead of saving the whole job for January.
Send quarterly summaries
Your software uses those records to prepare income and expense totals for HMRC. Review them before sending. These updates are summaries, not four separate annual tax returns.
Complete your tax return
After the tax year, make the necessary adjustments, add other income and claim eligible reliefs. Submit your annual return through compatible software by 31 January.
Dates for your diary
Your 2026/27 quarterly deadlines.
The standard periods build up from the start of the tax year. Calendar periods are also available; the submission deadlines are the same.
| Records covered | Send by |
|---|---|
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 April to 5 October 2026 | 7 November 2026 |
| 6 April 2026 to 5 January 2027 | 7 February 2027 |
| 6 April 2026 to 5 April 2027 | 7 May 2027 |
HMRC’s quarterly update guidance ↗
Two January dates to keep straight
If you started MTD in April 2026, your 2025/26 Self Assessment return is still due the usual way by 31 January 2027. Your first MTD annual return, for 2026/27, is due by 31 January 2028.
See HMRC’s transition timeline ↗Behind on an update?
HMRC will not apply late quarterly submission penalties for 2026/27. You still need digital records and all your updates before filing the annual return. Late tax returns and late payment can still lead to penalties.
Read the penalty rules ↗Help with an HMRC letter →Pick tools that fit your life
HMRC sets the rules.
You choose the software.
HMRC does not supply its own MTD software. Its directory includes free and paid products, plus bridging options for people who want to keep spreadsheets. Check what each product actually supports before you commit.
- Your types of self-employment and property income.
- Digital records, quarterly updates and annual return support, either in one product or a compatible combination.
- The device you use, the help you need, and how you will work with your accountant.
One step at a time
Get the essentials in place.
Check your start date and circumstances
Use HMRC’s eligibility checker with your relevant tax-year figures. If using digital tools is not reasonable for you, check the exemption guidance.
Choose your software and your support
Decide whether to manage the records yourself or work with an accountant. Agree who will keep records, send updates and complete the annual return.
Check your HMRC sign-up
You or your agent can use HMRC’s sign-up service. From September 2026, HMRC is also enrolling people who should already be using MTD. Check any letter and make sure your income sources are correct.
Authorise the software and organise your records
Follow your provider’s connection steps. Bring together the records for your starting tax year and check whether any updates are outstanding.
Follow HMRC’s sign-up guidance ↗
You can get help from an accountant
An authorised agent can support your records and filings. A main agent can handle the annual return; a supporting agent has a more limited role. Agree responsibilities before the deadlines arrive.
HMRC’s guidance on working with agents ↗Digital exclusion is about your circumstances
Age, disability, health, location or religious beliefs may make digital record keeping unreasonable. Exemptions are not automatic for everyone who finds software difficult. HMRC explains which exemptions apply automatically and which require an application.
Read HMRC’s exemption guidance ↗Explore our exemption checker →The questions behind the jargon
A few things worth clearing up.
Is the threshold based on my profit?
No. Add your self-employment and property income before deducting expenses. Salary, pensions and dividends do not count towards this qualifying-income threshold, although they may still belong on your annual tax return.
Check the official guidance ↗Does MTD mean four tax payments a year?
No. Quarterly reporting does not introduce quarterly tax payments. Your usual payment timetable continues, including payments on account on 31 January and 31 July if they apply to you.
Check the official guidance ↗Can I keep my spreadsheets?
Yes, with compatible bridging software and the required digital links. Check that your chosen combination supports your income sources and the tasks you need, including the annual return.
Check the official guidance ↗What if I have more than one business?
Keep the records separate and send the required update for each business or property income source. Your annual return brings your tax position together; one business’s update does not replace another’s.
Check the official guidance ↗Does this apply to limited companies?
This Income Tax rollout is for qualifying sole traders and landlords. Limited companies are outside it, and a start date for partnerships has not yet been set. MTD for VAT is a separate set of requirements.
Check the official guidance ↗I have not received a letter. Can I wait?
Check your position now. You are responsible for establishing whether you need MTD even if no letter arrives. HMRC’s eligibility guidance explains how to check your start date and what to do if its records do not match your circumstances.
Check the official guidance ↗Clearer rules. A calmer next step.
Ready to put a routine in place?
Explore Avona’s software, ask about managed support, or go straight to HMRC for the official instructions.