Making Tax Digital,
sorted in five minutes
The free toolkit for UK sole traders and landlords. Find when MTD applies to you, what you'll owe, and what to do next—no jargon, no upsell.
Quick answers
When does Making Tax Digital start?
Making Tax Digital for Income Tax starts on 6 April 2026 for sole traders and landlords with combined qualifying income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.
Who needs to use MTD?
Sole traders and landlords whose combined self-employment and rental income exceeds the threshold for that year. HMRC adds both income streams together before applying the threshold, using gross turnover rather than profit.
What is overlap relief?
Overlap relief is a tax refund mechanism for sole traders who started trading before April 2013 with a non-April accounting year end. HMRC may have taxed some profits twice, and the relief offsets that. It must be claimed by 5 April 2026.
How often do I file under MTD?
Four quarterly updates per year plus a final declaration. Quarterly deadlines are always the 7th of the month after the quarter ends: 7 August, 7 November, 7 February, and 7 May. The final declaration is due on 31 January.
When does MTD catch you?
HMRC rolls out Making Tax Digital in three waves. Your combined income decides which wave you're in. Gross turnover, not profit.
What happens next?
Once you cross the threshold, you're required to submit quarterly digital updates and keep a continuous digital record of your business income and expenses.
All six deadlines at a glance
Four quarterly updates plus a final declaration. These dates don't move—7th of the month, same months every year.
6 April – 5 July
6 July – 5 October
6 October – 5 January
6 January – 5 April
Full year summary + payment
Advance on next year's bill
Set calendar reminders now
Add all six deadlines to your calendar with a 7-day buffer. Late submissions trigger penalties immediately—there's no grace period.
What will you owe?
Scottish six-band or rUK three-band income tax. Class 4 NI. Personal allowance taper trap. Everything HMRC charges.
Could you be owed overlap relief?
If you started trading before April 2013 with a non-April year end, HMRC may have double-taxed some profits. Three questions tell you if it applies.
Did you start your business before April 2013?
Five questions. One score.
The £3,000 record-keeping penalty is the one almost nobody sees coming. It doesn't care about intentions—only whether your data has a continuous digital chain.
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Put the tax bit aside. Early.
January catches people out—not because the amount is shocking, but because it lands in one lump. Transfer the right percentage from every invoice and it passes quietly.
Is this your first year filing self-assessment? It changes the maths significantly.