Making Tax Digital for Income Tax: A Guide for Landlords and the Self-Employed

With Making Tax Digital (MTD) for Income Tax rapidly approaching, HMRC has confirmed the exact filing dates and requirements for quarterly reporting. This represents the most significant change to the UK tax system in decades, moving taxpayers away from traditional annual filings toward a real-time, digital approach.

Who is affected and when?

From April 2026, if your combined turnover from self-employment and gross rents from property income exceeds £50,000, you will be required to use MTD-compatible software.

HMRC is phasing this in to ensure all businesses have time to adapt:

• April 2026: Threshold of £50,000 (Phase 1).
• April 2027: Threshold drops to £30,000 (Phase 2).
• April 2028: Threshold reduces to £20,000 (Phase 3).

What are the new requirements?

Under the new regime, affected taxpayers must:

1. Keep digital records of all business and property income and expenses.
2. Submit quarterly updates to HMRC within 30 days of the end of each quarter.
3. Submit an annual tax return via MTD-compatible software to finalize their tax position for the year.

Critical Filing Deadlines

To help you avoid penalties, here is the official timeline of events and deadlines for the transition period:

Don’t Wait Until April 2026 to Get Ready

While the first major digital deadline is in 2026, the transition requires setting up new systems and habits. Preparing early ensures you avoid the last-minute rush and potential penalties.

At Harris & Co, we are Xero Platinum Partners and specialists in digital transitions for small businesses and landlords. Whether you are in the Property, Motorsport, Marketing, or Retail sector, we can help you choose the right software, set up your records, or handle the entire bookkeeping and filing process for you.

Ready to start your digital journey? Contact our Northampton team today or visit our Making Tax Digital Hub for more resources and to book your consultation.