Self-employed
Sole traders keep digital records and send four quarterly income & expense summaries to HMRC, replacing one annual entry.
Dinson & Co.
HMRC · Making Tax DigitalDigital records. Quarterly filings. No last-minute scramble.
VAT is already digital. Income Tax follows from April 2026. We get the software, the books and the quarterly submissions in place before your date arrives — not the week after.
2019MTD for VAT began
£50kITSA threshold 2026
4 ptsBefore a £200 fine
In short
HMRC programme
WhatDigital records & filings
VATMandatory now
Income TaxPhased 2026–2028
SoftwareMTD-recognised required
Final declarationDue 31 January
We track every quarterly date — you approve the figures
Key facts
Making Tax Digital (MTD) requires digital record-keeping and quarterly submissions through HMRC-approved software. It already applies to all VAT-registered businesses, and phases in for self-employed people and landlords with qualifying income above the thresholds below.
From April 2026
£50,000+
Qualifying income
From April 2027
£30,000+
Qualifying income
From April 2028
£20,000+
Qualifying income
The rollout
Making Tax Digital, stage by stage
MTD is not arriving all at once. Here is where the rules stand today, and what is coming next.
-
01
April 2019
MTD for VAT begins
VAT-registered businesses above the threshold must keep digital VAT records and file through compatible software.
-
02
April 2022
MTD for VAT extends
Every VAT-registered business must keep digital records and file through MTD software, regardless of turnover.
-
03
April 2026
Income Tax — £50,000+
Self-employed people and landlords above £50,000 qualifying income send quarterly digital updates.
-
04
April 2027
Income Tax — £30,000+
The mandate extends to qualifying income above £30,000, bringing more sole traders and landlords into scope.
-
05
April 2028
Income Tax — £20,000+
The threshold drops to £20,000, extending digital reporting to most self-employed taxpayers.
60-second check
When does MTD apply to you?
Move the slider to your annual qualifying income from self-employment and property. We will tell you your mandatory start date instantly.
Based on gross qualifying income for the relevant tax year, as reported on your most recent Self Assessment return. Confirm your position with HMRC or a Dinson accountant.
Live check
£45,000
Your MTD statusAlready in scope
At £45,000 of qualifying income, you crossed the £50,000 threshold and should already be sending quarterly digital updates to HMRC.
Get the definition right
What counts as qualifying income?
Qualifying income is your total gross income — before expenses — from self-employment and UK property combined. Multiple businesses or rental properties are added together into a single figure.
- Basis yearTwo tax years prior
- Measured beforeExpenses & allowances
- CombinesAll trades & properties
Worked example
A freelance designer with one rental flat:
Freelance design income (gross)£35,000
Rental income (gross)£20,000
Qualifying income£55,000
£55,000 is above the £50,000 threshold — so MTD for Income Tax has applied since April 2026, even though neither source alone reaches £50,000.
Don’t miss a date
Four updates a year, plus one final declaration
A standard tax year runs to these deadlines. Mandated filers receive one penalty point per missed update; at 4 points HMRC issues a £200 fixed penalty.
Q1 · Apr–Jun
7 Aug
Update covering 6 Apr–5 Jul
Q2 · Jul–Sep
7 Nov
Update covering 6 Jul–5 Oct
Q3 · Oct–Dec
7 Feb
Update covering 6 Oct–5 Jan
Q4 · Jan–Mar
7 May
Update covering 6 Jan–5 Apr
Year end
31 Jan
Final declaration
Who’s affected
Three ways MTD reaches your income
The rules land differently depending on how you earn.
Landlords
Rental income and expenses must be tracked digitally and reported quarterly once combined qualifying income passes the threshold.
Limited companies
MTD currently applies through VAT. Corporation Tax is not yet in scope, but digital systems now avoid a scramble when it is.
How we help
Everything MTD requires, handled end to end
From HMRC registration to the final declaration — we run your compliance for you.
MTD registration
We register you with HMRC for VAT or Income Tax MTD and confirm your exact mandatory start date.
Software setup
Xero, QuickBooks or FreeAgent — configured, connected to your bank, and ready to file on day one.
Digital bookkeeping
Ongoing, HMRC-compliant record keeping so nothing falls through the cracks between updates.
Quarterly submissions
We prepare and file every quarterly update, checked and reconciled before it reaches HMRC.
Year-end declarations
Your final declaration, completed and submitted with full visibility of what you owe and when.
Ongoing advice
A named accountant on hand for the questions that come up between filings.
Why Dinson
Compliance without the admin headache
- One accountant, not a call centreA named person who knows your figures, not a rotating support queue.
- Deadlines tracked automaticallyWe monitor every quarterly date against your specific MTD start.
- Software included, not upsoldMTD-recognised software setup is part of the service.
- Built for the next phase tooSystems set up now already cover the 2027 and 2028 threshold drops.
Common questions
Making Tax Digital, in plain English
Still unsure about thresholds or software? Ask us directly.
Ask a questionMaking Tax Digital is HMRC’s programme requiring digital record-keeping and submissions through approved software, replacing manual and paper-based reporting for VAT and, from April 2026, Income Tax Self Assessment.
It applies to all VAT-registered businesses now, and is phasing in for self-employed people and landlords: above £50,000 qualifying income from April 2026, above £30,000 from April 2027, and above £20,000 from April 2028.
Yes. Records and submissions must run through MTD-recognised software. Spreadsheets alone only qualify when paired with bridging software that files directly with HMRC.
No. Self Assessment continues, but for those in scope it is delivered differently — quarterly digital updates through the year, followed by one final declaration instead of a single annual return.
Mandated filers get one penalty point per missed quarterly update or final declaration. At 4 points, HMRC issues a £200 fixed penalty, and every further late submission adds another £200. A soft landing means no points for late quarterly updates in your first 12 months of mandation, though the final declaration is not covered.
Exemptions can apply where digital tools are not reasonably usable — due to age, disability, remoteness or religious grounds — or where qualifying income sits at or below £20,000. Some non-resident Self Assessment filers may also qualify. Exemptions must be agreed directly with HMRC.
Know your MTD date. Get compliant before it arrives.
Twenty minutes with a Dinson accountant tells you exactly when MTD applies to you and what needs to happen before then.