Making Tax Digital for Income Tax
From 6/4/2026, sole traders and landlords with qualifying income over £50,000 keep digital records and send HMRC an update every quarter, and the threshold falls over the next two years. We set you up, keep your records digital and send every update for you.
ACCA qualified accountants with over 20 years in practice
Who has to join and when
Judged on the qualifying income on an earlier tax return, from GOV.UK.
| Qualifying income | Judged on your | You start on |
|---|---|---|
| Over £50,000 | 2024/25 tax return | 6/4/2026 |
| Over £30,000 | 2025/26 tax return | 6/4/2027 |
| Over £20,000 | 2026/27 tax return | 6/4/2028 |
Do I need to join?
Pick the tax year your figures are for and enter your qualifying income. The checker uses GOV.UK's thresholds, and nothing you type is stored or sent.
What counts as qualifying income
Qualifying income is your total income from self employment and property before expenses, in other words your turnover. For a CIS subcontractor that means your gross pay, not your profit.
It leaves out wages from a job, a share of partnership profits, dividends and pensions. Partnerships join later, with no date set yet. Some people can be exempt, for example if they cannot use digital tools, and they still file a tax return as now.
What it involves
Digital records
Every sale and cost goes into software that works with Making Tax Digital, with its amount, date and category. HMRC does not provide the software, and a spreadsheet is allowed with bridging software.
Quarterly updates
You send an update for each business every quarter. Each one is a running total from the start of the tax year.
Your tax return
After the year ends you still file a tax return and pay by 31/1, so 31/1/2028 for 2026/27.
Software that fits you
We help you pick software that suits how you work and get it set up, so your phone does most of the work.
Quarterly update deadlines
Standard quarters, from GOV.UK. A calendar quarter option is allowed if you choose it before your first update.
| What | Rule or date | Source |
|---|---|---|
| MTD quarterly update 1 | 7/8 (period 6/4 to 5/7) | GOV.UK (opens in a new tab) |
| MTD quarterly update 2 | 7/11 (period 6/4 to 5/10) | GOV.UK (opens in a new tab) |
| MTD quarterly update 3 | 7/2 (period 6/4 to 5/1) | GOV.UK (opens in a new tab) |
| MTD quarterly update 4 | 7/5 (period 6/4 to 5/4) | GOV.UK (opens in a new tab) |
| MTD tax return for 2026/27 | 31/1/2028 | GOV.UK (opens in a new tab) |
Penalties
There are no penalty points for late quarterly updates in 2026/27. After that, each missed deadline earns a point, and at 4 points a £200 penalty applies, with £200 more for each later miss.
Paying late in 2026/27 costs nothing for the first 15 days, then 3% of the tax owed at day 15, another 3% at day 30 and 10% a year after that. For 2027/28 the first two charges rise to 4% each.
From April 2027 the same new penalties apply to everyone who files a personal Self Assessment return, not only people in Making Tax Digital.
How we set you up
Check your date
We look at your income and confirm when you start, or that you do not need to yet.
Choose the software
We pick software that suits your work and connect it to HMRC.
Keep records as you go
Photos of receipts from your phone, sorted by us into the right categories.
We send every update
Each quarterly update and your tax return, checked with you first.
The tax rules on this page come from GOV.UK and HMRC guidance. Last checked .
Questions about Making Tax Digital
Does Making Tax Digital apply to me?
It does if your qualifying income was over £50,000 on your 2024/25 return, from 6/4/2026. The line drops to £30,000 from 6/4/2027 and £20,000 from 6/4/2028.
I am a CIS subcontractor. Is it my profit or my pay that counts?
Your pay. Qualifying income is turnover before expenses, so your gross CIS pay counts, not the profit after costs.
Can I keep using a spreadsheet?
Yes, as long as it is linked to HMRC through bridging software. We can set that up if you would rather not change how you work.
What if I send a quarterly update late?
In 2026/27 there are no penalty points for late quarterly updates. From 2027/28 each missed deadline earns a point, and a £200 penalty applies at 4 points.
Do I still file a tax return?
Yes. The quarterly updates come on top of your yearly return, which is due by 31/1 after the tax year ends.
I have a job and rent out a flat. Does my salary count?
No. Wages from a job are left out of qualifying income. Only your property and self employment income before expenses count.
Get ready for Making Tax Digital
Tell us about your income and we will confirm your start date and send you a quote for setting up and filing each quarter.