When does Making Tax Digital start? Our guide to getting ready for Making Tax Digital

From April 6th 2026, sole traders and landlords with income of more than £50,000 will need to start using HMRC’s quarterly reporting system, Making Tax Digital.

With the deadline fast approaching, here is what I’m advising clients to consider and do to prepare.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their earnings to HMRC for tax assessment.

Those who need to comply with its requirements will essentially complete four mini quarterly tax returns per year, which are completed using digital software.

They will also need to complete a final tax return at the end of the tax year which will effectively be an accumulation of the four quarterly returns.

What are the Making Tax Digital submission dates?

Quarterly submissions will be as follows:

• Q1: 6th April – 5th July (deadline 7th August)

• Q2: 6th July – 5th October (deadline 7th November)

• Q3: 6th October – 5th January (deadline 7th February)

• Q4: 6th January – 5th April (deadline 7th May)

Businesses with an accounting period from 1st April to 31st March may opt for a calendar based reporting cycle, though the deadline remains the 7th of the month following the quarter.

What is the MTD threshold for 2026?

If you’re wondering ‘what is the qualifying income for Making Tax Digital?’ and when the Making Tax Digital for income tax start date is, we’re here to help. From the start of the 2026/27 financial year on April 6th 2026, sole traders and landlords with income of more than £50,000 will need to start complying with Making Tax Digital reporting procedures and deadlines.

The roll-out will continue in the 2027/28 tax year, when sole traders and landlords with income of more than £30,000 will need to start abiding by MTD requirements.

In the 2028/29 tax year, there is a planned expansion for those with income over £20,000.

Do I have to sign up for Making Tax Digital?

If you’re not sure whether the 2026/27 roll-out of Making Tax Digital for Income Tax applies to you, it’s important that you ask your accountant as soon as possible. They will be able to assess your finances and advise on whether you will need to comply with the MTD requirements.

Getting ready for Making Tax Digital – what should I do?

An important first step, as mentioned above, is to check whether you’re in scope for the 2026/27 roll-out. For some sole traders or landlords, their income may be around the £50,000 threshold and they may be unsure if they qualify – so it’s best to check with your accountant, who will be able to tell you for certain. With the 2025 tax returns recently submitted, the data is all with HMRC, so it should be available to make that assessment.

HMRC will be writing letters to everyone affected by MTD for Income Tax, and we are reaching out to all of our clients who are within scope to make sure they know we’re here for any MTD help and support they need. Sole traders or landlords who are unsure about the roll-out and looking for guidance can contact us for advice.

Accounting software for MTD

If you’re looking for accounting software that is MTD compliant, there are various options available. We recommend Xero, but whichever accounting software for MTD you choose, what’s most important is that you have software in place and are trained in how to use it.

If you’re already set up on accounting software, make sure you’re using it now – ahead of the MTD deadline – to keep your digital records. This is a great way to get used to using the software, to ask any questions about it, and to receive any additional training you may need, before the requirement to make quarterly submissions begins.

The first quarterly submission will be due in by 7th August, so some may be tempted to put off using the software until then – but bookkeeping needs to be done starting from April onwards.

How do I make a Making Tax Digital submission?

Submissions will be made through whichever digital software package you choose to use, with the first due in August.

Those who have a VAT registered business should find the process familiar, as it is similar to the VAT return process – the software will pull the relevant data through for MTD.

Will there be Making Tax Digital penalties?

If you’re wondering about Making Tax Digital fines, penalties for not fulfilling requirements of the system are not automatic and will be based on a penalty points system. Points will be accumulated for contraventions such as late submissions, late payments and failing to keep records.

If you’re wondering about getting ready for Making Tax Digital, we’re here to help

At Prime Accountants Group, we’re here to offer advice on Making Tax Digital for landlords and Making Tax Digital for self-employed people. So, if you think you might be in scope for the April 2026 roll-out, contact us to see how we can help you prepare.