Making Tax Digital for Income Tax Launches April 2026
Self-employed individuals and landlords earning over £50,000 must now submit quarterly digital tax updates to HMRC, replacing the traditional annual Self Assessment for many.
Making Tax Digital for Income Tax officially started on 6 April 2026 for sole traders and landlords with gross income over £50,000. This represents a major shift in how self-employed people and property landlords report their income to HMRC, replacing the traditional annual Self Assessment process with quarterly digital updates.
Who Is Affected
Mandation for 2026/27 is based on amounts reported on the 2024/25 return, which was due on 31 January 2026 — just over two months before the obligations began. If your qualifying income was £50,000 for the 2024 to 2025 tax year, you need to use it from 6 April 2026. The threshold will drop to £30,000 from April 2027 and £20,000 from April 2028, bringing more people into the system.
What You Must Do
Quarterly updates summarise your income and expenses for the period. The first update for the 2026/27 tax year covers the period from 6 April 2026 to 5 July 2026 and is due by 7 August 2026. You'll need HMRC-recognised software to keep digital records and submit these updates.
For expats and foreign residents: If you're self-employed in the UK or earning rental income from UK property while living abroad, these rules apply to you too. Qualifying income combines your gross self-employment income and gross property income, so even modest rental portfolios can push you over the threshold. You'll need to arrange compatible software and stay on top of quarterly deadlines regardless of where you're based — missing them triggers penalties just as it would for UK residents.
