April 2026 sees a significant change in the UK self-assessment tax system when Making Tax Digital for Income Tax (MTD) comes into force, impacting sole traders, self-employed individuals, and landlords.
There is a major shift in the way income tax data is submitted to HMRC with the introduction of Making Tax Digital for Income Tax. This will be the biggest change to income tax reporting since HMRC introduced self-assessment over 30 years ago.
Sole traders, self-employed individuals, and those earning income from property will be required to maintain digital records and submit quarterly updates.
In this blog, we explain how this new system will work and what you’ll be required to do to stay compliant.
What is the start date for MTD for Income Tax Self Assessment?
Making Tax Digital for Income Tax is being introduced in stages from April 2026.
The date that you will be required to change your income tax reporting will depend on your total yearly income from self-employment and/or property rentals.
The key dates for Making Tax Digital compliance for sole traders, self-employed individuals and landlords are:
| Start Date | Income Threshold | Based On |
| 6 April 2026 | More than £50,000 | 2024/25 tax return income |
| 6 April 2027 | £30,000 to £50,000 | 2025/26 tax return income |
| 6 April 2028 | £20,000 to £30,000 | Planned legislation |
To determine your start date, HMRC will review your total income from self-employment and property on your latest tax return. For individuals who also have other types of income (e.g. dividends, income from employment (PAYE), or partnership income), these additional income sources will not be counted towards your qualifying income for Making Tax Digital.
Those whose income falls below the thresholds can opt to join MTD for ITSA voluntarily. By joining voluntarily, you can become accustomed to new digital reporting and have time to install compatible MTD software before it becomes mandatory.
Individuals will only need to start using Making Tax Digital for Income Tax after they submit their first tax return. When HMRC receives your first tax return, they will check your qualifying income. If it exceeds the threshold, you’ll be notified when to start using MTD.
What are the dates for Making Tax Digital quarterly submissions?
Quarterly updates will be required to be submitted to HMRC to report income and expenditure. The quarterly reporting dates will be:
| Period | Submission Deadline |
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
- An individual’s quarterly updates will be set to standard quarters by default. To change quarterly update deadlines, you must do this through your software.
- You will need to submit a separate quarterly update for each source of income you receive. For example, you’ll need one update for self-employment income and a separate update for any UK property income.
- All income from UK properties will form a single portfolio. Income from overseas properties will be classed as a separate portfolio and will require its own quarterly updates. Income from jointly owned property will be split according to ownership share.
- If you run multiple businesses as a sole trader or self-employed individual, you’ll need to submit a separate quarterly update for each business income stream.
- Quarterly updates should be cumulative to show total income and expenses from the start of the tax year. This means that mistakes can be corrected in the following quarter.
What is an End of Period Statement (EOPS) and Final Declaration?
You’ll be required to submit an EOPS to finalise your business income figures at the end of a tax year. The EOPS is an opportunity to make final adjustments to your accounts, claim reliefs, and confirm the accuracy of the information.
A Final Declaration is also required. The Final Declaration replaces the Self Assessment tax return. It will be used to list all income sources, including property income, self-employment income, non-business income (such as wages/PAYE income), pensions, capital gains, and investment income.
The deadline for the Final Declaration is 31 January, following the end of the relevant tax year.
MTD compatible accounting software & digital record keeping
Under Making Tax Digital rules, self-assessment tax returns will no longer be submitted via the HMRC’s online portal and paper tax returns will no longer be allowed. Instead, you will need MTD compatible accounting software to record and submit digital records of your income and expenses to HMRC. There is a wide range of compatible software products on the market, and suitable software does not have to be expensive.
Making Tax Digital for Income Tax Frequently Asked Questions
Is Self-Assessment changing in 2026?
Yes, some individuals will see changes to their current self-assessment routine from April 2026. However, in 2026, it will only change for individuals with a total income above the threshold (see table above).
Individuals who fall within the new tax rules of MTD will need to submit quarterly reports and a Final Declaration instead of the current annual self-assessment tax return being filed by 31 January each year.
For those individuals under the initial threshold, self-assessment tax returns remain unchanged for now. However, those under the threshold can voluntarily opt into the new Making Tax Digital for Income Tax regime.
Does MTD for Income Tax apply to my limited company?
No, MTD for Income tax only applies to sole traders and landlords, not to limited companies.
Do I need to register for MTD for Income Tax Self-Assessment?
From 6 April 2026, some, but not all, individuals will be required to use Making Tax Digital for Income Tax. The date you need to sign up will depend on your total annual income from self-employment or property.
HMRC will review your Self Assessment tax return and qualifying income from the previous tax year. If your income for the tax year is above the relevant threshold, HMRC will write to you to notify you that you need to switch to MTD for Income Tax reporting. They will confirm that you must start using Making Tax Digital for Income Tax by the start of the upcoming tax year.
You won’t be automatically enrolled into MTD for Income Tax by HMRC. As with self-assessment, you’ll need to sign up online once you reach the threshold, or you can sign up voluntarily.
We recommend that you begin to prepare now by choosing and using your software or deciding how your accountant will act for you, if you have one.
How will MTD for Income Tax affect my self-assessment reporting?
MTD for Income Tax dramatically changes the regularity of reporting for sole traders running small businesses and the self-employed.
Currently, many people still rely on manual bookkeeping or use spreadsheets and wait until the end of the year to collate all their paperwork, like receipts, invoices and bank statements. These changes mean that you will need to keep accurate, up-to-date digital records each quarter and submit these figures quarterly to HMRC.
MTD is designed to help people understand their tax liability throughout the year, rather than just at the end of a tax year, eliminating any unforeseen tax bills.
How do I prepare for MTD for Income Tax?
Preparation for MTD for Income Tax is crucial to ensure you are prepared in advance for any changes you will need to make.
If you currently use manual records or spreadsheets instead of online accounting software, it is recommended that you begin to use HMRC-approved software to maintain records in future. Early preparation will help you avoid stress and pressure and may also prevent future tax penalties.
How Edwards Accountants help with Making Tax Digital for Income Tax?
Our experienced team of chartered accountants and taxation specialists can provide tailored advice on your MTD tax obligations and latest tax regulations to help you stay compliant, reduce risk, and make informed financial decisions.
We can assist with new MTD reporting requirements, quarterly submissions, compatible software and claiming tax relief.
Get in touch today, and be prepared for these changes ahead of the deadlines.