Making Tax Digital for Income Tax: Are you Registered and Ready for HMRC’s New Rules?

Self-employed individuals and landlords now face new quarterly reporting obligations under Making Tax Digital (MTD) for Income Tax. If your qualifying income exceeds £50,000, you may already be required to keep digital records and submit quarterly updates to HMRC using compatible software.

Who needs to register for MTD for Income Tax?

From 6 April 2026, sole traders and landlords with qualifying income of more than £50,000 in the 2024/25 tax year are required to use MTD for Income Tax. This means keeping digital records and submitting quarterly updates to HMRC using compatible software. Qualifying income is based on income from self-employment and property before expenses.

This represents a significant change from the traditional Self-Assessment process. Rather than reporting information mainly after the end of the tax year, MTD requires taxpayers to maintain digital records throughout the year and to submit quarterly updates through compatible software.

What are the Quarterly Filing Deadlines?

The first quarterly update for the 2026/27 tax year was due by 7 August 2026, and the second quarterly update is due by 7 November 2026. Subsequent deadlines are 7 February 2027 and 7 May 2027.

HMRC Auto-Enrolment Begins in September 2026

If you have not yet registered but believe Making Tax Digital for Income Tax applies to you, it is important to take action now. HMRC is taking steps from September 2026 to automatically enrol taxpayers who should have joined the scheme from April 2026 but have not yet registered. Taking action now means you can make sure your details are correct, choose suitable compatible software and ensure your records are ready, rather than waiting for HMRC to enrol you.

What Should you do Now?

To help you avoid penalties and last-minute filing pressures, we recommend reviewing your bookkeeping records now and ensuring they are maintained using compatible MTD software.  If we maintain your bookkeeping or are preparing your quarterly submissions, please send us your records as early as possible. This gives us enough time to review the information, raise any queries and make sure the submission is ready before the deadline.

To help avoid last-minute issues, we recommend that you:

• Check whether MTD for Income Tax applies to you and whether you need to sign up.
• Make sure your digital bookkeeping records are complete and up to date.
• Confirm that your accounting software is compatible with MTD for Income Tax.
• Send any outstanding records to us as soon as possible.
• If you think you may be exempt, check the relevant HMRC guidance or speak to us about your circumstances.

It is also worth noting that the MTD rules are being introduced in stages. Those with qualifying income of more than £30,000 in 2025/26 will generally need to join from 6 April 2027, while those with qualifying income of more than £20,000 in 2026/27 will generally need to join from 6 April 2028.

How can JS Help?

If you are unsure whether MTD for Income Tax applies to you, our team can help determine your obligations, confirm whether you need to register and ensure your software and records meet HMRC requirements.

Contact your usual JS adviser or email us at enquiries@teamjs.co.uk.