Making Tax Digital
From 6 April 2026, sole traders and landlords must comply with the new Making Tax Digital rules it if their annual income from self-employment and property is over £50,000.
If you have £30k of income from self-employment and property and £20k+ income from other sources such as salary, dividends, interest etc. you do not have to complete making tax digital returns. Your ‘qualifying income’ is still deemed to be £30k.
If you fall into this scheme you must keep digital records and submit quarterly returns to HMRC plus a final year-end Tax Return. That means five submissions a year instead of one, using software that's compatible with HMRC systems.
The first return is due 7th August 2026 for the quarter April 2026 – June 2026.
Key Deadlines
| 6 April 2026 | Start keeping digital records using compatible software |
| 7 August 2026 | First quarterly Update for the period 6 April to 5 July 2026 due |
| 7 November 2026 | Quarterly Update for the period from 6 July to 5 October 2026 due |
| 7 February 2027 | Quarterly Update for the period 6 October 2026 to 5 January 2027 |
| 7 May 2027 | Quarterly Update for the period 6 January 2026 to 5 April 2027 due |
| 31 January 2028 | Deadline to submit your MTD Tax Return for the full year 6 April 2026 to 5 April 2027 including all other income such as salaries and dividends and pay your income tax |
You now have to have compatible software, you can’t just fill the return in on the HMRC website.
What is included in the quarterly Returns
You need to report your income and expenses from self-employment and property for previous quarter. So in August 2026 you need to report property income and expenses for the quarter April 2026 – June 2026 only.
Other income
If you have other income such as salaries, dividends, interest, capital gains etc. these are NOT reported quarterly to HMRC. This information just goes on your annual self-assessment tax return as normal.
Payment of Tax
The dates that tax payments are due is NOT affected, the payment dates remain unchanged.
Income from Jointly Owned Property
If you own a property jointly and the income is shared. The £50k threshold before you need to make MTD returns is based on your share of income only.
Making Tax Digital (MTD) is being rolled out in phases
The thresholds are reducing in the coming years. The thresholds will reduce to:
Income over £50,000: from 6 April 2026
- Income over £30,000: from 6 April 2027 (based on your tax return for 2025/26)
- Income over £20,000: planned from 6 April 2028 (based on your tax return for 2026/27)
OJ Williams Accounting Limited can help you with all your quarterly returns and annual tax return. Contact us today for a no obligation chat on how making tax digital affects you.
More information can be found at HMRC