TaxTidySheets

Making Tax Digital for Income Tax: who, when and what

From April 2026 many sole traders and landlords have to keep digital records and send HMRC a short update every quarter, as well as the end-of-year return.

Updated 28 September 2026

When it applies to you

Qualifying income overBased on your return forMTD from
£50,0002024/256 April 2026
£30,0002025/266 April 2027
£20,0002026/276 April 2028

What "qualifying income" means

It's your total gross income (turnover, before expenses) from self-employment and from UK and overseas property, added together. A sole trader turning over £35,000 with a £20,000 profit is judged on the £35,000. Salary from a job, pensions, savings interest and dividends don't count. If you own property jointly, count your share of the rent.

What you have to do

Quarterly update deadlines

QuarterUpdate due
6 April – 5 July7 August
6 July – 5 October7 November
6 October – 5 January7 February
6 January – 5 April7 May

You can choose calendar quarters (ending 31 March, 30 June and so on) in your software instead.

Can you use a spreadsheet?

Yes. You can keep your records in a spreadsheet and send the quarterly figures to HMRC through bridging software, which reads the totals from the sheet and submits them. HMRC lists compatible products, several of them free for simple cases. What you can't do is type the figures into HMRC's website by hand.

Penalties

MTD uses a points system. Each late quarterly update earns a point, and a £200 penalty applies once you reach four points. Points expire if you then keep to the deadlines for a period. Late payment penalties and interest are separate.

Exemptions

You can apply for an exemption if you can't reasonably use digital tools, for example because of age, disability or where you live. Some groups are also exempt or deferred by HMRC. If you're unsure, check HMRC's "Find out if you need to use MTD for Income Tax" service on GOV.UK.

MTD-ready records in a spreadsheet

Our UK trackers keep income and expenses by quarter, so the four totals you send through bridging software are ready when the deadline comes. Excel + Google Sheets.

See the UK templates

General information, not tax advice. Rules are set by HMRC and can change.