Making Tax Digital for Income Tax (MTD IT) is no longer a distant plan — it's happening, and for many sole traders and landlords it becomes mandatory from 6 April 2026. If you're affected, it will change how you keep records, report income, and manage deadlines throughout the year.
The good news? The timetable and thresholds are now confirmed, and there are no late filing penalties for the first year!
In this blog, we'll break down who must join, what changes, and the practical steps you should take now to be ready.
What is MTD for Income Tax (MTD IT)?
MTD IT is a new way of reporting income to HMRC for people who currently file a self assessment tax return and have income from:
- self-employment (sole traders) and/or
- property letting (landlords)
Instead of keeping paper records and filing one tax return once a year, you will need to:
? keep digital records of income and expenses
? send quarterly summary updates to HMRC through compatible software
? complete end-of-year adjustments and submit a final declaration by the 31 January
Importantly, this does not mean you'll be filing five full tax returns each year. Quarterly submissions are summaries pulled from your records, followed by an annual finalisation.
Who must join MTD IT — and when?
MTD IT applies based on your qualifying income, which HMRC defines as your total gross income (before expenses or tax) from the above sources.
Other income such as employment wages, pensions, or savings interest does not count toward the MTD threshold.
The confirmed start dates
From 6 April 2026
You must use MTD-compatible software if your qualifying income is over £50,000 in the 2024/25 tax year.
From 6 April 2027
MTD IT extends to those with qualifying income over £30,000 in the 2025/26 tax year.
If you are unsure what year you will need to comply with MTD by, please get in touch with our office on 01323 576446 or info@cornfieldaccountants.com for advice.
Are other areas of self assessment changing?
The other fundamentals of self-assessment will remain the same, including:
- registering for self-assessment when you start trading or receive property income
- paying income tax and national insurance
- managing payments on account to HMRC
Key MTD IT deadlines you need to know
If you are in the April 2026 group, your first mandatory MTD year is the 2026/27 tax year, but preparation starts earlier.
Here are the key dates:
- 31 January 2026 – file your 2024/25 self assessment tax return as normal
- 6 April 2026 – MTD IT begins for those with qualifying income over £50,000
- 7 August 2026 – deadline for your first quarterly update (covering 6 April–5 July, or calendar quarter option)
- 7 November 2026 / 7 February 2027 / 7 May 2027 – deadlines for the remaining quarterly updates
- 31 January 2027 – you still file a “traditional” self assessment return for the 2025/26 tax year
What to do now?
1) Confirm whether you are affected
Add together gross self-employment income and gross rental income (UK and overseas) - remember gross income is before expenses and tax.
If the total is above £50,000 for 2024/25, you're in the April 2026 group.
2) Review how you currently keep records
If you're still using paper or basic spreadsheets, it may be time to review this. There are 'bridging solutions' for spreadsheets which are MTD compliant, but paper records will be a thing of the past.
If you already use accounting software, check it will support MTD IT and what the quarterly update process will look like.
What can we do to help you?
Our team will be able to advise you on when you will need to comply with MTD, what solutions may be best for you and from there determine whether you would like any assistance with filing quarterly updates.
We will also be able to assist in providing bridging software for those who wish to remain on spreadsheets as their method of record-keeping.
We also provide a free in-person or telephone consultation to any new clients looking to start their own business or affected by the upcoming Making Tax Digital changes.