From 6 April 2027, sole traders and landlords with qualifying income over £30,000 must use Making Tax Digital for Income Tax.
Here is how to tell if you are affected, what changes and how to prepare calmly.
Add together your gross income from self-employment and from property, before expenses. This is your qualifying income.
You keep digital records in compatible software and send a short quarterly update of your income and expenses to HMRC. The updates are summaries, not tax returns. After the year ends you finalise everything and submit your return through the software, still by 31 January.
Late quarterly updates earn penalty points. Reaching 4 points brings a £200 penalty. HMRC is not applying points to late quarterly updates in 2026/27, the first year, but points do apply from 2027/28, so anyone joining in April 2027 should treat the deadlines as real from day one.
The online return for the 2025/26 tax year, and any tax owed, is due by 31 January 2027.
Read moreThere is no single right answer.
Read moreMaking Tax Digital changes how sole traders and landlords report to HMRC.
Read moreHMRC looks at the qualifying income on your 2025/26 Self Assessment return, which is due by 31 January 2027.
Only with bridging software that sends the updates to HMRC. Most people find dedicated software simpler and quicker.
Your share of the rental income counts towards your qualifying income. Joint owners have some simplifications on expenses.
Yes. We can set everything up and send the updates on your behalf as your agent.
Every client is different, so there is no standard fee. Tell us a little about your situation and we'll come back with a personalised quote, usually within one working day.
