Overview
- Making Tax Digital for Income Tax took effect on April 6, 2026 for self‑employed people and landlords with combined turnover over £50,000, who must keep digital records and send quarterly updates via compatible software.
- Quarterly periods end 5 July, 5 October, 5 January and 5 April, with the first update due 7 August and the 31 January tax payment date unchanged.
- HMRC set a one‑year soft landing for 2026/27 with no penalty points for missed quarterly updates, though late final declarations and late payments can still incur fines.
- From 2027/28 the points system applies to quarterly submissions, where each late update earns one point, four points trigger a £200 fine, and points expire after 24 months.
- Experts warn the new software bills and quarterly admin could push small landlords to quit or raise rents, and HMRC says people who cannot go digital can apply for exemptions and support.