Making Tax Digital
Making Tax Digital. A clear way forward.
Understand your deadline, organise your records and get practical support for Making Tax Digital for Income Tax.
Why the way you report is changing
Making Tax Digital (MTD) for Income Tax requires affected sole traders and landlords to keep digital records, send quarterly updates and submit their tax return using compatible software.
The first mandatory wave started in April 2026. Whether you must join depends on your qualifying income and any applicable exemption. This is separate from the existing MTD rules for VAT.
How Brookwood can help
A workable routine matters more than a last-minute software purchase. We can discuss the support you need to:
Get ready
- Check your qualifying income and start date.
- Review current bookkeeping and software.
- Agree who maintains records and submits updates.
Keep on track
- Organise income, expenses and supporting documents.
- Build a quarterly review and reporting routine.
- Coordinate updates with your annual tax return.
Already affected but not yet set up? Contact us to review your position. Preparing for April 2027? Use the time to establish a routine that works for you.
When do you need to start?
Qualifying income generally combines gross self-employment and property income, before expenses. It is not your profit or take-home income.
| Qualifying income | Tax year assessed | Start date |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 Already in force |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
For example, £24,000 of self-employment income plus £12,000 of rental income totals £36,000. If that is your qualifying income for 2025 to 2026, the April 2027 threshold is relevant.
Property income received by a limited company is subject to Corporation Tax, not these Income Tax rules. If you also have personal property or self-employment income, check that separately.
What needs to change in practice?
Keep digital records of the relevant income and expenses, including dates, amounts and categories. You still need supporting records such as invoices and bank statements.
Spreadsheets can form part of your setup when used with suitable compatible or bridging software and the required digital links. A paper notebook alone is not an MTD digital-record system.
You or your agent can create the digital records. Agree a reliable process before quarterly deadlines, rather than assuming every transaction must be entered instantly.
Quarterly updates and your annual return
Updates are cumulative summaries from the start of the tax year. They are not four separate final tax returns.
| Income and expenses from | Update deadline |
|---|---|
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 April to 5 October 2026 | 7 November 2026 |
| 6 April 2026 to 5 January 2027 | 7 February 2027 |
| 6 April 2026 to 5 April 2027 | 7 May 2027 |
Calendar update periods are also available, with the same submission deadlines. Each relevant income source needs its own update. Your tax return still brings together the year's income, adjustments and reliefs; the 2026 to 2027 return is due by 31 January 2028.
Get a plan for your MTD requirements
Tell us whether you are self-employed, a landlord or both, and how you currently keep your records. We can discuss your deadline, the gaps in your setup and the right level of help.
Guidance checked 14 October 2026. Your circumstances and exemptions matter; confirm your position before relying on a start date.