Making Tax Digital for Income Tax: HMRC’s August 2026 Update
HMRC has confirmed that more than 436,000 sole traders and landlords have sent their first Making Tax Digital (MTD) for Income Tax quarterly update for the 2026/27 tax year. From September 2026, HMRC will begin signing up eligible customers who should be using MTD but have not yet enrolled.
If you have not sent your first quarterly update, HMRC says you can submit it now and there will be no penalty for late quarterly updates during the 2026/27 tax year.
Your MTD timetable
Qualifying income means gross income from self-employment and property before expenses or tax allowances are deducted. Income from more than one relevant source is combined.
The start date depends on your qualifying income:
- Qualifying income over £50,000 in 2024/25: MTD applies from 6 April 2026.
- Qualifying income over £30,000 in 2025/26: MTD applies from 6 April 2027.
- Qualifying income over £20,000 in 2026/27: MTD applies from 6 April 2028.
What MTD requires
Keep digital records, use MTD-compatible software connected to HMRC, and send quarterly updates.
You must also complete the required year-end Income Tax return process.
What to do now
If your qualifying income was over £50,000, sign up now or ask your accountant to register you. Bring your digital records up to date and submit any missed quarterly update.
If your qualifying income for 2025/26 was over £30,000, prepare for MTD from 6 April 2027 and choose compatible bookkeeping software.
How MK Accounts Ltd can help
We can check your qualifying income, register you for MTD, set up compatible bookkeeping software, and manage quarterly updates and your year-end tax return. Call 07427 265206 or email admin@taxmk.co.uk.
Official HMRC sources
Latest HMRC update: https://www.gov.uk/government/news/436000-sole-traders-and-landlords-make-their-tax-digital
Check when you must use MTD: https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax — Information correct as at 15 August 2026. This article is general guidance and does not replace advice based on your circumstances.