At a glance
HMRC reports that Making Tax Digital for Income Tax launched in April 2026. Its update records the first quarterly submissions from the initial group brought into the service.
What HMRC has reported
According to HMRC, more than 860,000 sole traders and landlords with qualifying income above £50,000 were required to start keeping digital records using compatible software from 6 April 2026. HMRC says their first quarterly updates were submitted by 7 August 2026.
Who needs to check their position?
Making Tax Digital for Income Tax applies in stages. HMRC’s guidance says that a sole trader or landlord who is registered for Self Assessment, receives income from self-employment or property, and has qualifying income above the relevant threshold may need to use the service. Qualifying income is generally the total turnover from self-employment and property before expenses, based on the relevant earlier tax return. It is not simply the final profit figure.
For the first stage, HMRC says that people with qualifying income above £50,000 for 2024 to 2025 should have started from 6 April 2026. The threshold is scheduled to reduce to above £30,000 for the 2025 to 2026 tax year, with the service starting from 6 April 2027, and to above £20,000 for the 2026 to 2027 tax year, starting from 6 April 2028. These dates are important, but a person should still use HMRC’s checking tool and current guidance because their particular circumstances may be different.
What changes in practice?
For people within the service, compatible software is used to create, store and correct digital records of self-employment and property income and expenses. The software is also used to send quarterly updates to HMRC and, for later tax years, to complete the tax return. The change is therefore about the way information is recorded and reported during the year, not only about the final annual return.
Quarterly updates are summaries of the digital records. They are not a final tax calculation in themselves. The end-of-year process still matters because adjustments, other income, gains, reliefs and allowances may need to be considered before the tax return is completed. Keeping records accurately throughout the year makes that final work more manageable, but it does not remove the need to review the full tax position.
Getting ready without rushing
A practical first step is to check whether the relevant income is self-employment income, property income, or both, and to identify the turnover figures reported for the tax year HMRC will use. Next, review how records are currently kept. If receipts, invoices and bank information are spread across several places, bringing them together before a reporting deadline can save time and reduce avoidable corrections.
Compatible software should be chosen for the needs of the taxpayer, not simply because it is available. Consider who will enter information, how bank records and invoices will be captured, whether there are separate income sources, and how an accountant will access the records if they are acting. HMRC advises people to make sure their software works with Making Tax Digital for Income Tax and to decide how an agent will act if they have one.
Dates and record keeping
The first quarterly update deadline described in HMRC’s 2026 guidance was 7 August 2026. The timing of records can depend on the accounting period and whether standard or calendar update periods are used. This is why it is better to look at the current step-by-step guidance than to assume that a date used by one business applies to another. HMRC’s guidance also makes clear that responsibility for the accuracy of digital records remains important before information is sent.
If you have not received a letter from HMRC, that does not by itself settle whether you need to use the service. HMRC’s guidance says it remains the taxpayer’s responsibility to check if and when they need to sign up. Where there is uncertainty, checking early gives more time to understand the rules, choose software and organise records before the next update is due.
How we can help
Exclusive Accountants can help you work through the information that is relevant to your business or property income, organise the questions you need to answer and discuss your existing records. We can also explain the practical reporting process. We cannot replace HMRC’s eligibility decision, so the current official guidance and checking tools should always be used alongside individual advice.
Keep your information current
Making Tax Digital is easier to manage when income sources, contact details and records are updated as they change rather than reconstructed at the end of a period. If a business starts, stops or changes its activities, make a note of the date and retain the supporting records. The same principle applies to a new property income source or a change in the way records are kept. The exact HMRC reporting treatment should be checked, but a clear timeline makes it easier to work through the next step.
There is no advantage in guessing whether a reporting requirement applies. Use HMRC’s current eligibility guidance, make sure the figures used are the right ones and ask for help where the position is unclear. Taking those steps early gives you more control over the process and reduces the risk of an avoidable last-minute problem.
Who is this relevant to?
This update is most relevant to sole traders and landlords who may be within Making Tax Digital for Income Tax, and to anyone helping them keep digital records and meet reporting requirements.
What to do next
Check the official HMRC guidance for the detailed rules and dates that apply to you. If you are unsure whether Making Tax Digital affects you, contact Exclusive Accountants to discuss your circumstances.
Read the official HMRC updateSource: HM Revenue & Customs, published 13 August 2026. This page is a general summary and does not replace official guidance.