For sole traders, self-employed individuals and landlords with gross annual income exceeding £50,000 from self-employment or property, Making Tax Digital (MTD) for Income Tax now applies from 6 April 2026.
These new obligations require those affected to provide quarterly updates of their income and expenses to HMRC. The first date to mark in the calendar is, for the 2026/27 tax year, 7 August 2026.
What needs to be submitted by 7 August?
This first submission should cover the period from 6 April to 5 July 2026 and include:
- All sales or income received during the period
- A breakdown of business expenses by category (travel, office costs, software, professional fees and other allowable costs)
- Any corrections to figures already entered during the period
If income has fallen or is nil during the period, a submission is still required provided the taxpayer earned £50,000 or more in the 2024/25 tax year. Separate quarterly updates are required for each business or property rental.
How to submit
Updates must be submitted using HMRC-recognised MTD-compatible software, either directly by the taxpayer or by an agent on their behalf. Compatible options include Xero, QuickBooks, Sage Accounting, Free Agent or a spreadsheet linked to HMRC-compliant bridging software.
Making the switch to compatible software sooner rather than later means there is time to get comfortable with the process before the 7 August deadline.
