Quarterly updates are now a reality for many sole traders and landlords. Here is what you need to do.
Making Tax Digital (MTD) for Income Tax changes how self-employed people and landlords report to HMRC. Instead of one annual return, you keep digital records and send quarterly summaries.
Who is affected and when
- From 6 April 2026: qualifying income over £50,000
- From 6 April 2027: qualifying income over £30,000
- From 6 April 2028: qualifying income over £20,000
Qualifying income is your combined gross self-employment and property income, before expenses.
What you need to do
- Choose HMRC-recognised software
- Keep records of income and expenses digitally
- Submit quarterly updates
- Finalise your position after the tax year ends
Practical articles from our team. General information only — contact us for advice on your situation.