From 6 April 2026, sole traders and landlords whose gross self-employment turnover plus gross property income exceeds £50,000 in the 2024-25 tax year are mandated into Making Tax Digital for Income Tax Self Assessment (MTD ITSA). HMRC began contacting affected taxpayers in writing during March 2026.

Key practical points for those now in scope:

  • The first quarterly update covers 6 April - 5 July 2026 and is due by 7 August 2026.
  • Submissions must be sent through HMRC-recognised software. See the official compatible software list.
  • The current Self Assessment return for 2025-26 is unaffected; the change applies to 2026-27 onwards.

The £30,000 threshold cohort joins from April 2027, and the £20,000 threshold extends the regime further from April 2028 per current HMRC guidance.

Who is affected from April 2026?

The April 2026 start date is aimed at individuals with qualifying income above £50,000, using the tax year HMRC has set for the first cohort. In practice, this means many sole traders, freelancers, landlords, and people with both business and property income need to check their gross figures before expenses. PAYE salary is not the trigger, and a limited company's Corporation Tax position is separate, but personal rental or sole-trader income can still bring an individual into scope.

Anyone close to the line should review what HMRC counts as qualifying income rather than relying on profit after costs. The IsMyTaxDigital qualifying income guide explains the common inclusions and exclusions, including property income and mixed income situations.

What the first quarterly update means

A quarterly update is not the same as the old annual Self Assessment return. It is a periodic update sent through compatible software, based on digital records kept during the tax year. For the first 2026-27 quarter, the period runs from 6 April to 5 July 2026 and the update is due by 7 August 2026. Later quarters follow the same rhythm, with a final declaration after the tax year has ended.

The update does not remove the need to check the full year's tax position. Adjustments, allowances, and final figures still need careful review. The practical change is that record keeping and submissions become more regular, so leaving everything until January is no longer a sensible workflow for people in scope.

What taxpayers should do next

If you are in the April 2026 cohort, check that you can access your HMRC online account, pick software that supports MTD for Income Tax, and make sure your opening records for 2026-27 are complete. If you use spreadsheets, check whether bridging software is suitable or whether a full bookkeeping package would reduce manual work. The software comparison page is a useful place to start.

If you are not in the first cohort, the 2027 and 2028 thresholds still matter. Current HMRC guidance brings in the £30,000 cohort from April 2027 and the £20,000 cohort from April 2028. Use the deadlines page for quarterly dates and the MTD changelog to track any future policy changes before relying on a start date.