Overview
- From 6 April 2026, sole traders and landlords with over £50,000 in combined self‑employment and property income must use Making Tax Digital for Income Tax.
- HMRC is now mailing mandation notices, and recipients must choose compatible software and sign up themselves because registration is not automatic.
- Quarterly digital updates will replace reliance on a single annual return, with the first mandatory submission due on 7 August 2026.
- For the 2026–27 year, no penalty points apply for missed quarterly updates, though late annual returns or late payment still incur penalties.
- A transition overlap remains as a 2025–26 Self Assessment is still due by 31 January 2027, and entry thresholds drop to £30,000 in 2027 then £20,000 in 2028.