Who has to join, and when
Making Tax Digital for Income Tax applies to sole traders and landlords based on their qualifying income, which is the total of their gross self-employment and property income before expenses. It is being phased in:
- from 6 April 2026, if qualifying income on your 2024 to 2025 return was over £50,000;
- from 6 April 2027, if qualifying income on your 2025 to 2026 return is over £30,000;
- from 6 April 2028, if qualifying income on your 2026 to 2027 return is over £20,000.
Some people are exempt, for example those who are digitally excluded, and partnerships will join later. HMRC's guide on who needs to use Making Tax Digital for Income Tax has a checker. If you joined this April, you are already part way through your first year.
What changes in practice
Digital records. You keep records of income and expenses in compatible software, or in spreadsheets linked to bridging software.
Quarterly updates. Summaries of income and expenses are sent to HMRC each quarter. Under standard periods the deadlines are 7 August, 7 November, 7 February and 7 May. Calendar quarters can be chosen instead. HMRC has said it will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year, but the updates are still required.
The tax return. After the year ends you make any adjustments and submit your tax return through the software by 31 January following the tax year, confirming your figures are correct and complete. This replaces the traditional Self Assessment tax return for those within MTD.
How we get you ready
- We confirm whether and when you are required to join, based on your returns.
- We help you choose software that suits how you work, whether you prefer an app, full cloud accounting or linked spreadsheets.
- We set up categories for your income sources, including separate property businesses.
- We prepare and submit quarterly updates for you, or review yours before you send them.
- We finalise the year, claim allowances and submit the tax return.
Landlords with jointly owned property, people with several trades and those with income from both self-employment and property should start early, because each income source needs its own records and updates. Starting a few months before your mandation date gives time to test the software and fix any gaps before the first update is due.
If you are already signed up and struggling with authorisation or submissions, our MTD software problems page covers the technical side. Landlords may also want to see our landlord accounts service.
What we'll need from you
Your recent tax returns, your Government Gateway or HMRC online account details so you can authorise us as your agent, and an outline of your income sources and current record keeping.
Sole traders and landlords in Kent
We are helping tradespeople, freelancers and landlords across Kent adjust to quarterly reporting, including many who will be brought in from April 2027. Send us a message and we will check where you stand.
Frequently asked questions
How is qualifying income worked out?
It is the total of your gross income from self-employment and property, before any expenses are deducted. Employment income, pensions and dividends are not included. HMRC uses the figures on your earlier Self Assessment return to decide whether you need to join, so a landlord with modest profits but high rents can still be brought in.
Do quarterly updates mean I pay tax quarterly?
No. Quarterly updates are summaries of income and expenses, not tax payments. Your payment dates follow the existing Self Assessment system. The updates give HMRC and you an estimate of the tax building up during the year, which can help with planning and saving towards your bill.
Can I keep using spreadsheets?
Yes, as long as the spreadsheet is linked to bridging software that sends the updates to HMRC digitally. Copying and pasting figures by hand between programmes can cause problems with the digital links required. For many people a simple app is easier, but we can make a spreadsheet approach work where it suits you.
What happens if I miss a quarterly update this year?
HMRC has said it will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. From the following year a points system applies, with a financial penalty once the threshold is reached. The updates are still a legal requirement this year, so we recommend getting into the routine now.
Making Tax Digital for Income Tax across Kent
We help clients throughout the county, including: