Executive Summary
From 6 April 2026, sole traders and landlords with income over £50,000 must keep digital tax records and send quarterly updates to HMRC using MTD-compatible software.
This guide explains how to prepare, register, and comply with MTD requirements, including all key steps and deadlines from December 2025 to January 2028
MTD aims to modernise the UK tax system by requiring digital record-keeping and quarterly submissions using approved software. From 6 April 2026, individuals with annual gross income over £50,000 must follow the MTD rules. The threshold will reduce to £30,000 from April 2027, extending the requirement to the next group of taxpayers.
Who Must Register
MTD for Income Tax applies to:
- Sole traders with gross income exceeding £50,000 (from April 2026)
- Landlords with property income exceeding £50,000
- Individuals with combined self-employment and property income above £50,000
From April 2027, those with income between £30,000 and £50,000 will also need to comply.
Step-by-Step Registration Process
Step 1: Assess Eligibility
Determine whether your total gross income from self-employment and/or property exceeds £50,000.
Deadline: By December 2025
■ Tip: Review your previous year’s accounts early to confirm eligibility in good time.
Step 2: Choose MTD-Compatible Software
Select and subscribe to software approved by HMRC that supports quarterly updates and final declarations.
Deadline: By January 2026
■ Tip: Consider cost, usability, and whether your accountant can access your records directly.
Step 3: Gather Required Information
Prepare your Government Gateway ID, UTR, National Insurance number, and valid email address.
Deadline: By January 2026
Step 4: Sign Up for MTD
Use HMRC’s online service to register for MTD for Income Tax. Agents may register clients via an Agent Services Account.
Deadline: By February 2026
Step 5: Link Software to HMRC
Connect your chosen software to your HMRC account before submission begins.
Deadline: By March 2026
Step 6: Start Keeping Digital Records
Begin recording income and expenses digitally from 6 April 2026 using your chosen software.
Start Date: 6 April 2026
Step 7: Submit Quarterly Updates
Send quarterly updates to HMRC via your MTD-compatible software.
Deadlines: 7 Aug 2026, 7 Nov 2026, 7 Feb 2027, 7 May 2027
■ Tip: Set software reminders to avoid missed deadlines.
Step 8: Submit Final Declaration
Submit your final declaration confirming total income and adjustments for the year (replacing the Self-Assessment).
Deadline: 31 January 2028 (for 2026–27 tax year)
Suggested Timeline Summary
| Month | Task |
| Dec 2025 | Confirm eligibility |
| Jan 2026 | Choose MTD-compatible software & gather required information |
| Feb 2026 | Register for MTD with HMRC |
| Mar 2026 | Link software to HMRC account |
| Apr 2026 | Begin keeping digital records |
| Aug 2026 | Submit first quarterly update |
| Nov 2026 | Submit second quarterly update |
| Feb 2027 | Submit third quarterly update |
| May 2027 | Submit fourth quarterly update |
| Jan 2028 | Submit final declaration |
Compliance and Penalties
Failure to comply with MTD requirements may result in late filing penalties, interest charges on unpaid tax, or potential loss of access to simplified reporting features.
■ Tip: Staying proactive and meeting all deadlines will help you avoid penalties and maintain good standing with HMRC.
Further Information
For detailed guidance or updates, visit HMRC’s official MTD information
Or contact your accountant or tax adviser for tailored support.
Disclaimer: The information in this article is provided for general information only and does not constitute legal or professional advice. We cannot accept responsibility or liability for any actions you may take, or not take, based on this information.