TL:DR
If you’re self-employed or a landlord earning over £50,000 per year, from 6 April 2026 you need to keep digital records and report to HMRC every three months using software.
Here’s everything you need to know 👇
So what’s actually changing?
The government has launched something called Making Tax Digital for Income Tax. Instead of filing just one annual Self Assessment return, you’ll now keep digital records and send updates to HMRC every three months.
Does this affect me?
The new rules apply to you if you’re a sole trader or landlord, whose combined self-employment and property income exceeds £50,000 on your Self-Assessment Tax Return for the 2024/25 tax year – that’s your income before expenses or tax deductions.
So if you earn, say, £35,000 from freelancing and £18,000 from renting out a property, your combined receipts exceed £50,000 – which means you’re in scope from 6 April 2026.
The threshold will drop further over the next few years, so those earning over £30,000 will be brought in from April 2027, and over £20,000 from April 2028.
So even if you’re not affected right now, it’s worth getting familiar with how this works.
What do I actually have to do?
Instead of one annual return, you’ll now have five submissions a year: four quarterly updates showing your income and expenses, plus a final year-end Tax Return using software that’s compatible with HMRC’s systems.
Here are the quarterly deadlines for the 2026/27 tax year:
- 7 August 2026 (covering 6 April – 5 July)
- 7 November 2026 (covering 6 July – 5 October)
- 7 February 2027 (covering 6 October – 5 January)
- 7 May 2027 (covering 6 January – 5 April)
After those four updates, you’ll need to submit a Final Declaration – this replaces the old Self Assessment return, and is due by 31 January following the end of the tax year.
Will I need to pay tax more regularly?
Your actual tax payment deadlines aren’t changing, you’ll still pay by 31 January as usual. The quarterly updates are purely for reporting.
This is a great opportunity to get your tax sinking fund in place though and it be nice and accurate, build up that savings pot ahead of time and your future self will thank you for it!
What software do I need?
You can’t do this through HMRC’s existing Self Assessment portal, you’ll need to use commercial software.
Tools like Xero, FreeAgent, and QuickBooks are already set up to handle MTD. HMRC has a full list of approved software on its website, it’s worth checking before you commit to anything.
What if I’m both a sole trader AND a landlord?
Separate quarterly updates will be required for each business — so if you’re a sole trader and a landlord, you’ll need to provide eight quarterly updates a year. Yep, eight. All the more reason to get good software in place early.
What do I need to do right now?
✅ Check whether you’re in scope (gross income over £50k from self-employment and/or property)
✅ Sign up for an HMRC online services account if you don’t already have one
✅ Choose MTD-compatible software and get it linked up before April
✅ Start keeping digital records of all income and expenses now
✅ Add those quarterly deadlines to your calendar
Got questions about what this means for your specific situation? An accountant or tax adviser can help you work out exactly where you stand.