In the rapidly modernising landscape of UK taxation, few changes have reshaped the obligations of landlords and the self-employed as decisively as Making Tax Digital (MTD) for Income Tax. As of 6 April 2026 the regime is no longer a date on the horizon — it is live, it is mandatory, and the first quarterly filing deadline is almost upon us. At TaxDigit, accountants in Surrey serving clients across the UK, we are guiding property investors, company directors and business owners through this transition every day, and the message is clear: preparation now prevents penalties later.
Who must comply, and from when
From 6 April 2026, you fall within MTD for Income Tax if your qualifying income exceeded £50,000 in the 2024–25 tax year. Qualifying income is the figure that trips many people up: it is your gross income — turnover for sole traders and total rents received for landlords — before any expenses are deducted, not your profit. If you have both a trade and a property business, HMRC adds the two together to test the threshold.
The regime is being phased in. The £50,000 threshold applies from April 2026; it falls to £30,000 from April 2027, and to £20,000 from April 2028. In other words, even if you are outside the net today, many more landlords and sole traders will be drawn in over the next two years. You can confirm your own position using the official GOV.UK guidance on Making Tax Digital for Income Tax.
What actually changes
MTD replaces the single, once-a-year Self Assessment return with five touchpoints a year: four quarterly updates plus a year-end Final Declaration. You must keep your records digitally and submit through MTD-compatible software — spreadsheets alone, or paper records, will no longer satisfy HMRC.
The quarterly rhythm
The standard quarterly update deadlines are 7 August, 7 November, 7 February and 7 May. For the 2026–27 tax year that means your first quarterly update — covering 6 April to 5 July 2026 — is due by 7 August 2026. The Final Declaration, which confirms your full income position and replaces the traditional tax return, is due by 31 January following the tax year (31 January 2028 for 2026–27).
The new penalty regime
Alongside MTD, HMRC has introduced a points-based penalty system that works much like points on a driving licence. Each missed submission earns a point; reach the threshold — four points for those mandated into MTD — and a £200 penalty follows. HMRC has confirmed a soft-landing for late quarterly updates during the 2026–27 transitional year, but the Final Declaration is not protected, and late-payment penalties apply separately. The full rules are set out in the official guidance, and our Guildford-based team monitors them closely so that no client is caught out.
How TaxDigit helps you stay ahead
For busy landlords and owner-managers, the real cost of MTD is not the £200 penalty — it is the time, the software decisions and the risk of error spread across five filings instead of one. Our role is to remove that burden entirely. We help clients select and configure compliant software, establish clean digital bookkeeping from day one, and review every quarterly update before it reaches HMRC, so your figures are accurate and your deadlines are never missed.
Whether you need help with your personal tax position, ongoing bookkeeping that is MTD-ready, or strategic tax advisory and planning to structure your affairs efficiently, our chartered certified team delivers premium, plain-English advice tailored to your circumstances.
Act before 7 August
Making Tax Digital is the most significant change to personal tax compliance in a generation, and the first deadline is weeks away. If you are unsure whether you are caught, or you simply want the confidence of expert hands managing your filings, speak to TaxDigit today. Call our Guildford office on 01483 230 777, email info@taxdigit.co.uk, or visit our contact page to arrange a bespoke advisory consultation. As accountants in Surrey serving clients across the UK, we make digital tax simple.