Overview
- Sole traders and landlords with combined self‑employment and property income above £50,000 based on their 2024/25 return must sign up for Making Tax Digital for Income Tax from April 6, 2026.
- Quarterly updates fall due on August 7, November 7, February 7 and May 7, with a final declaration by January 31, and the April 2026 cohort still files 2025–26 by January 31, 2027 before their first MTD return due January 31, 2028.
- HMRC will not provide its own software, so users must keep digital records and submit via compatible products, including free options listed on GOV.UK.
- A new points‑based regime will apply for late submissions, triggering a £200 fine once the threshold is reached, with no penalty points for late quarterly updates in the first 12 months for those joining in April 2026.
- The rollout expands in stages, lowering the threshold to £30,000 from April 2027 and £20,000 from April 2028, bringing close to three million people into scope by 2028, with exemptions available for genuine digital exclusion.