Checked against GOV.UK on 14 August 2026 · Applies from 6 April 2026 onwards.
“now I feel very stressed as I have never used any accounting software and doubt I can despite having had a computer for 34 years”
We hear this most. someone who has filed on paper since the 1990s, OpenRent Community forum, 31 July 2026 — someone in the same position as you.
If you are in, these are your dates — and they are the same whatever you do for a living. Your next quarterly update is due 7 November 2026, and because updates are cumulative it covers 6 April to 5 October 2026 — so it also catches up 7 August 2026 if you missed it. Your tax return for 2026 to 2027 is due 31 January 2028, and that one is still in the points system. And from September 2026 HMRC has been signing people up itself, in stages, if they had not signed up.
You are not alone, and this is the measured version of that sentence. HMRC put 864,000 sole traders and landlords in scope for this tax year (HMRC, 5 February 2026), and reported on 12 August 2026 that 436,000 had sent a first quarterly update and 570,000 had signed up. We have not subtracted one from the other to make a "how many are behind" headline — they were published six months apart and count different things — but you can see the size of the room you are standing in.
twenty minutes, tonight, with last year's return open
None of those three steps costs money. Anyone charging you to do them is selling you something HMRC gives away.
Where these come from, on GOV.UK: quarterly updates and their deadlines · the tax return · who has to use MTD, and when · working out qualifying income · the recognised-software finder · what to do if HMRC signed you up.
| Qualifying income | On the tax return for | You must use MTD from |
|---|---|---|
| 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 |
| £20,000 or less | — | Automatically exempt, unless your circumstances change |
Qualifying income is gross self-employment income plus gross property income, before expenses, taken from the tax return you filed in the previous tax year. Sources: find out if and when you need to use MTD and work out your qualifying income (GOV.UK).
HMRC publishes the official list of software recognised for Making Tax Digital for Income Tax, and its own guidance says plainly that “free products are available for those with simple tax affairs”. We drove that finder ourselves on 1 September 2026 and it returns recognised products costing £0 — for sole traders and for landlords, including bridging tools that submit straight from a spreadsheet you already keep. We take no commission from any of them, we rank none of them, and this site carries no affiliate links.
HMRC's official software finder (gov.uk) · how bridging software works · the free two-number check · your own four dates
Signing up for Making Tax Digital is free at GOV.UK. So is the checker on this page, and so is every answer on this site.
A job or a pension does not count towards the MTD threshold, and it does not go in a quarterly update. The rule is consistent: only self-employment and property income drives MTD, but everything still lands on the tax return.
Employment (PAYE) income, State Pension, private pensions, dividends and a partnership profit share do not count towards qualifying income. A landlord with a salary and one let property is measured on the rent alone, however large the salary is.
You only create digital records for self-employment and property income and expenses. Other income does not need digital records and does not go in a quarterly update.
Depending on your software and income sources you may be able to add other income — savings interest, for example — during the tax year. That income is not included in your quarterly updates, but the tax estimate you see after each update becomes more complete. HMRC's example is a landlord who is also employed and has savings interest: the estimate combines property figures from the updates, PAYE income added by HMRC, and savings interest if you choose to add it.
HMRC adds employment income, student and postgraduate loan plan type and PAYE repayments, state, private and occupational pensions, other taxable state benefits, CIS subcontractor deductions, Capital Gains Tax residential property disposals, and Marriage Allowance claims. You add savings interest, partnership profit share, dividends, payrolled benefits in kind not subject to Class 1A National Insurance, and anything else. You must check HMRC's figures before you submit.
Your MTD for Income Tax penalty points are separate from your VAT penalty points. On software, check whether the product you already use for VAT also covers MTD for Income Tax, or whether your chosen income tax product can meet your VAT needs.
No. Employment (PAYE) income is excluded from qualifying income, as are pensions, dividends and a partnership profit share.
Andrew at Axion Labs
The thing worth saying plainly is that Making Tax Digital doesn't change what you owe or when you pay it. It changes how you report — same figures, sent four times instead of once, from software instead of a form. If you've filed your own return for years, you already know the hard part. What's left is picking a tool, and there are recognised ones that cost nothing.
General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.
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