Practical Making Tax Digital guidance for UK sole traders, self-employed landlords and owner-operated small businesses that keep sole-trader records.
MTD for Income Tax hits UK landlords from April 2026. Who is mandated, what counts as qualifying income (gross rent, jointly owned property), the quarterly update cycle, digital record rules for rental income — and how to prepare statement data for compatible software.
From April 2026, self-employed people with qualifying income over £50,000 must keep digital records and report to HMRC quarterly under MTD for Income Tax. Who qualifies, the quarterly cycle, what digital records mean in practice, and the leanest compliant setup.
The MTD for Income Tax thresholds explained with worked examples: over £50,000 from April 2026, over £30,000 from 2027, and over £20,000 from 2028. What counts as qualifying income, the combined-income rule, joint property, exemptions, and how HMRC decides who is mandated.
MTD for Income Tax means four quarterly updates a year. The exact quarter dates and deadlines (7 August, 7 November, 7 February, 7 May), what data goes in each update, how cumulative corrections work, the calendar-quarter election, and the per-business rule.
What counts as an MTD digital record, when digital links apply between software products, and how to prepare statement data for review and import into compatible software.
How MTD for Income Tax penalties work, including the 2026–27 no-points exception for quarterly updates, the four-point threshold, point expiry, late-payment penalties and reasonable-excuse rules.