Making Tax Digital for Income Tax: what is changing in 2026

From 6 April 2026, HMRC is introducing Making Tax Digital for Income Tax, often shortened to MTD for Income Tax. It changes the way many self employed people and landlords keep their records and report to HMRC. If that is you, it is worth understanding now so there are no surprises.

What is actually changing

Today, most people send HMRC one Self Assessment tax return a year. Under MTD for Income Tax, that single annual return is replaced by digital record keeping and regular updates through the year. In short, you will:

• Keep your income and expense records digitally, using software that works with HMRC.
• Send HMRC a short update every three months, so four quarterly updates a year.
• Submit one final declaration at the end of the year to confirm everything and finalise your tax.

So it becomes five submissions a year instead of one. It sounds like more work, but with the right software most of it is automatic.

When does it apply to everyone else?

It is being phased in by income level:

• April 2026 if your self employment and property income is over £50,000.
• April 2027 if it is between £30,000 and £50,000.
• April 2028 if it is over £20,000.

If you earn below these levels, you carry on with the normal Self Assessment return for now.

The first key date to remember

For those starting in April 2026, the first quarterly update covers 6 April to 5 July 2026 and is due by 7 August 2026. Missing these new deadlines can lead to penalties, so it pays to be ready early.

What you should do now

• Check whether your income is likely to be over £50,000 for the 2026 to 2027 tax year.
• Make sure you are using, or ready to use, MTD compatible software.
• Start keeping your records digitally so the switch feels seamless.