What is Making Tax Digital for Income Tax Self Assessment?
Making Tax Digital for Income Tax is part of the UK government's broader plan to digitise the tax system. From April 2026, landlords and self-employed individuals with an annual income over £50,000 will be required to:
Keep digital records of income and expenses.
Submit quarterly updates to HMRC via Making Tax Digital software.
Complete a Final Declaration annually.
Those earning over £30,000 will be required to join Making Tax Digital from April 2027.
Who does Making Tax Digital for Income Tax impact?
Making Tax Digital is already in effect for VAT-registered businesses. Making Tax Digital for Income Tax expands these digital requirements to all landlords and self-employed individuals earning above the threshold (£50,000 from April 2026, with later phases affecting those earning over £30,000 and £20,000).
Instead of filing a single annual self-assessment, landlords and self-employed people will need to submit quarterly updates and a final declaration to HMRC through Making Tax Digital compatible software.
Making Tax Digital for Income Tax key dates
April 2026:Making Tax Digital for Income Tax (£50,000 threshold)
April 2027:Making Tax Digital for Income Tax (£30,000 threshold)
April 2028:Making Tax Digital for Income Tax (£20,000 threshold)
What are the penalties for non-compliance?
HMRC is introducing a new points-based penalty system for Making Tax Digital for Income Tax:
Late quarterly submissions will earn penalty points.
Accumulating too many points results in a fine.
Late tax payments will trigger fines based on how overdue they are.
To avoid penalties, landlords must ensure they use Making Tax Digital compatible software and meet all reporting deadlines.
Can I still use paper records?
No, in order to be compliant with Making Tax Digital regulations you will need to digitise any paper records using an Making Tax Digital compatible software.
About quarterly updates and final declarations
Landlords will have one month after the end of the quarter to submit each quarterly update. The submission dates look like:
Quarterly period | Submission deadline |
April 6 - July 5 | August 5 |
July 6 - October 5 | November 5 |
October 6 - January 5 | February 5 |
January 6 - April 5 | May 5 |
Final Declaration: Due January 31 (the following year)
Final Declaration (Replaces Self-Assessment Tax Return)
After the last quarter, you must submit a Final Declaration.
This confirms your total income, expenses, and tax due for the year.