Last reviewed: June 2026. Tax thresholds and dates are set by HMRC and may change — always check the latest guidance on GOV.UK.
The short version
Making Tax Digital for Income Tax replaces the once-a-year Self Assessment tax return with a digital, quarterly way of reporting. Instead of scrambling to file one return after the tax year ends, you keep digital records and send HMRC a short summary of your income and expenses every three months, then confirm everything once at the end of the year.
It applies to self-employed sole traders and landlords whose income is above a set threshold. It is being introduced in phases between 2026 and 2028 based on how much you earn.
Who has to do it — and when
MTD for Income Tax is being rolled out in phases. The threshold is based on your qualifying income — your combined gross (pre-expenses) income from self-employment and property in a tax year.
| From | Qualifying income | Who this affects |
|---|---|---|
| 6 April 2026 | More than £50,000 | Higher-income sole traders & landlords |
| 6 April 2027 | More than £30,000 | Mid-income sole traders & landlords |
| 6 April 2028 | More than £20,000 | Most remaining sole traders & landlords |
Good to know
The threshold looks at your turnover, not your profit. If you have both a business and rental income, you add the two gross figures together to see which phase you fall into. HMRC uses your most recent tax return to decide whether you're in scope.
Landlords: no furnished vs unfurnished split
For the tax years EasyTaxer supports (2026‑27 onwards), there's no separate tax treatment for furnished and unfurnished property — so you don't need to sort your lettings into one bucket or the other. The Furnished Holiday Lettings (FHL) regime was abolished from April 2025, and the old wear-and-tear allowance was replaced years before that. You report your UK property income and expenses as a single rental business, whatever your furnishings.
What you actually have to do
Under MTD for Income Tax there are really only four moving parts. EasyTaxer handles all of them.
Keep digital records
Record your business income and expenses digitally — in software like EasyTaxer rather than on paper or in a shoebox of receipts. You can type entries in, import a spreadsheet, or (later) connect a bank feed.
Send quarterly updates
Four times a year, send HMRC a running summary of your income and expenses for each three-month period. These are cumulative totals, not a final figure — they give HMRC (and you) an in-year view of how you're doing. See our how-to guide.
Finalise each income source
After the tax year ends, you confirm the final figures for each business or property — adding any year-end adjustments such as allowances or accounting changes. HMRC no longer requires a separate end-of-period statement; these adjustments now feed straight into your final declaration.
Submit your final declaration
Finally, you bring together all your income — business, property, plus anything else like employment, savings or dividends — and confirm it's complete and correct. This final declaration (also called crystallisation) replaces the old annual Self Assessment return and tells HMRC your total tax bill for the year.
The deadlines
Each quarterly update has a deadline one month and a few days after the quarter ends. For the standard tax year (6 April – 5 April), the quarter deadlines are:
| Quarter | Period covered | Deadline |
|---|---|---|
| Q1 | 6 Apr – 5 Jul | 7 August |
| Q2 | 6 Jul – 5 Oct | 7 November |
| Q3 | 6 Oct – 5 Jan | 7 February |
| Q4 | 6 Jan – 5 Apr | 7 May |
Your final declaration for a tax year is due by 31 January the following year — the same familiar Self Assessment deadline. EasyTaxer tracks all of these for you and shows your next deadline on your dashboard, so nothing creeps up.
Why is HMRC doing this?
HMRC's aim is to reduce errors and make reporting more timely. Keeping records digitally and submitting more often is meant to spread the work across the year, cut down on last-minute mistakes, and give you a clearer running picture of what you'll owe. For you, the practical upside is no more once-a-year scramble — and, with the right software, very little extra effort.
How EasyTaxer helps
EasyTaxer is HMRC-recognised software built specifically for MTD for Income Tax. It keeps your digital records, calculates your estimated tax as you go, and submits your quarterly updates, year-end figures, and final declaration directly to HMRC's APIs — all from one account.
- Every HMRC income type in one place — self-employment, property, employment, interest, dividends, pensions, CIS and more.
- Real-time tax estimates so there are no surprises.
- Deadline tracking so you always know what's due next.
- Direct, secure submission to HMRC — no paper, no re-keying.
Common questions
Do I still file a Self Assessment return?
Once you're in MTD for Income Tax, your final declaration replaces the annual Self Assessment return. You report through quarterly updates during the year and confirm everything once at year-end.
What if my income is below the threshold?
You're not mandated yet, but you can choose to join voluntarily. Many people sign up early to spread the admin and get used to the new way of working before their phase begins.
Can my accountant do this for me?
Yes. Agents can manage MTD for Income Tax on your behalf. See our guide for accountants & agents.
Is there jargon I should know?
Plenty — but it's simpler than it sounds. Our plain-English glossary defines every term you'll meet.
Ready to get set up?
It takes minutes to register and connect to HMRC. Free to set up and explore — pay only when you make your first submission.