What it is
Making Tax Digital for Income Tax is HMRC's change to how sole traders and landlords report their income. Instead of one tax return a year, you keep digital records, send HMRC a summary of your income and expenses every three months, and make a final declaration at the end of the year.
Who has to use it, and when
It depends on your qualifying income: your gross income from self-employment and property, before any expenses or allowances. That means your turnover, not your profit.
| Start date | If your qualifying income is above | HMRC looks at |
|---|---|---|
| 6 April 2026 | £50,000 | Your 2024-25 return |
| 6 April 2027 | £30,000 | Your 2025-26 return |
| 6 April 2028 | £20,000 | Your 2026-27 return |
If you're under the threshold for a given year, you don't have to join yet. If your income grows, you'll be brought in the year after you cross a threshold. HMRC is writing to people it thinks are affected, but you shouldn't wait for a letter.
What you have to do
- Use compatible software. Keep your records digitally in software that HMRC supports, or have an accountant do it.
- Record income and expenses as you go. Each transaction is kept in your digital records.
- Send a quarterly update. A summary of income and expenses (totals by category, not every receipt) four times a year.
- Make a final declaration. By 31 January after the tax year ends, confirming your figures and any adjustments.
- Pay your tax. The dates for paying don't change: 31 January and 31 July.
The quarterly deadlines
| Period covered | Update due |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
Each update covers the whole tax year so far, so you can correct earlier figures without resending anything. If you prefer, you can choose calendar quarters (ending 30 June, 30 September, 31 December and 31 March), which have the same deadlines.
What happens if you miss one
From 2026-27, missed quarterly deadlines earn penalty points. At four points you get a £200 penalty. The old rules for late tax returns and late payments still apply too.
Exemptions
You can ask HMRC for an exemption if it isn't reasonable for you to use digital tools, for example because of age, disability or where you live. Ask HMRC before you assume you're exempt.
What to do now
- Work out your date: use the checker above, or look at your latest return
- Start keeping digital records now, even if your date is a year or two away. The habit is the hard part
- Choose your route: software that sends the updates, or an accountant who does it for you
- Keep your expenses in order: see expenses you can claim
This isn't tax advice
The figures here come from GOV.UK and are right at the date shown above. Rules can change, so check GOV.UK or speak to an accountant before you rely on a date.
Keep your records tidy for whichever route you take
Rounds records your income as it arrives and your expenses in HMRC-shaped categories, and gives your accountant their own read-only login. It doesn't send quarterly updates to HMRC itself.