Making Tax Digital for Income Tax (MTD IT)

What sole traders and landlords need to know

From April 2026, sole traders and landlords with combined total income (turnover, not profit!) above £50,000 must make quarterly submissions to HMRC, as well as submitting a end-of-year declaration (also known as a self assessment tax return).

Who needs to make quarterly submissions?

This affects you if your:

  • Self employed income; and/or

  • Income from property in total (income you receive, before deducting any costs)

Is over £50,000. This information is based on what was submitted on your 2024/25 self assessment tax return.

From April 2027, this will extend to those earning over £30,000, based on those who earned over £30,000 on their 2025/26 self assessment tax return

From April 2028, this will extend to those earning over £20,000, based on those who earned over £20,000 on their 2026/27 self assessment tax return

When to make quarterly submissions

If your self employment income and property income combined is over £50,000 in your self assessment return for the year ended 5 April 2025, you will need to make quarterly submissions from April 2026. The first quarterly submission will be in August 2026.

If your self employment income and property income combined is over £30,000 in your self assessment return for the year ended 5 April 2026, you will need to make quarterly submissions from April 2027. The first quarterly submission will be in August 2027.

How to make quarterly submissions

You will need an MTD approved software to make your quarterly submissions. Softwares include:

  • Bridging software (records maintains on a spreadsheet then submitted by a bridging software that links from the spreadsheet to HMRC)

  • An MTD compliant cloud accounting software, including Dext and Xero.

The method you choose depends on your business needs.

Why are you making quarterly submissions?

  • It supports better business planning by providing up-to-date financial information.

  • It will allow you to have an approximate idea of your tax liability so you can start

  • It will reduce the risk of errors in submissions by submitting more frequently and digitally

Want to find out more?

Contact us to find out more

We can set you up on an MTD compliant software for you to submit for yourself, or we can make the quarterly submissions for you.