Current position: 1 September 2026. The first mandatory MTD for Income Tax year is under way. This page covers individuals with sole-trader or property income, not MTD for VAT.
Who must use it and when
You need to use MTD for Income Tax when you are an individual registered for Self Assessment, receive income from self-employment or property, and your qualifying income is more than the threshold for the relevant test year. Qualifying income is gross self-employment and property income before expenses.
| Self Assessment return HMRC checks | Qualifying income | Mandatory start |
|---|---|---|
| 2024/25 | More than £50,000 | 6 April 2026 |
| 2025/26 | More than £30,000 | 6 April 2027 |
| 2026/27 | More than £20,000 | 6 April 2028 |
A threshold is more than the stated amount, not equal to it. HMRC reviews Self Assessment returns and writes to people it identifies, but HMRC says it remains the taxpayer’s responsibility to check. Partnerships are not brought into the individual timetable above; HMRC says their timetable will be set out later.
What the rules require
- Use compatible software to create, store and correct digital records of self-employment and property income and expenses.
- Send cumulative quarterly updates for each self-employment and property business. They are summaries, not tax returns, and do not require tax adjustments before submission.
- Use software to check the full-year figures, add adjustments, reliefs and other income, and submit the tax return by the normal 31 January deadline.
Employment pay, pension income and dividends are not qualifying income for deciding the MTD start threshold. They may still need to be checked or added when the tax return is completed.
The first mandatory year’s dates
| Task for standard update periods | Deadline |
|---|---|
| First quarterly update | 7 August 2026 |
| Second quarterly update | 7 November 2026 |
| Third quarterly update | 7 February 2027 |
| Fourth quarterly update | 7 May 2027 |
| Submit the 2026/27 tax return and pay tax due | 31 January 2028 |
For 2026/27, HMRC says it will not apply penalty points for late quarterly updates. The updates still need to be sent before the tax return can be submitted, and the tax-return and payment rules remain important. This temporary treatment must not be assumed for later years.
What to check now
- Use HMRC’s checker if your qualifying income or start year is uncertain.
- Check whether an automatic or application-based exemption applies before assuming digital duties.
- If you should have started in April 2026, sign up or follow HMRC’s instructions if HMRC has signed you up, authorise compatible software and catch up digital records from the start of the tax year.
Follow the sole-trader checklist or check software requirements.
Primary sources
- HMRC: find out if and when you need to use MTD for Income Tax — thresholds, scope and responsibility; updated 26 March 2026; retrieved 1 September 2026.
- HMRC: before you use MTD for Income Tax — first-year tasks and dates; updated 16 July 2026; retrieved 1 September 2026.
- HMRC: send quarterly updates — cumulative updates, periods, deadlines and 2026/27 penalty treatment; updated 16 July 2026.
- Income Tax (Digital Obligations) Regulations 2026 — statutory framework.