01 Apr 2026
Millions of sole traders and landlords need to prepare now for massive changes to the tax system that take effect this year.
Sole traders and landlords have been warned that they have just days to prepare for Making Tax Digital for Income Tax (MTD IT). HMRC is reminding those with gross income of more than £50,000 from self-employment and property of major changes from 6 April 2026. They will need to use recognised software to keep digital records and send light-touch quarterly updates of their income and expenses.
Those impacted will need to:
- keep digital records of all business-related income and expenditure transactions – this can either be by use of compatible software, or spreadsheets to store records;
- submit quarterly updates of their income and expenses per trade no later than one month and seven days following the quarter end; and
- submit a 'final declaration' in place of the usual submission of a Self Assessment Tax Return.
Key Dates
| 06 April 2026 |
You must start keeping records using MTD for Income Tax-compatible software |
| 07 August 2026 |
Deadline to send your first quarterly update for April through June 2026 |
| 07 November 2026 |
Deadline to send your second quarterly update for July through September 2026 |
| 31 January 2027 |
Deadline to submit a Self Assessment tax return the usual way for 2025 to 2026 |
| 07 February 2027 |
Deadline to send your third quarterly update for October through December 2026 |
| 07 May 2027 |
Deadline to send your fourth quarterly update for January through March 2027 |
| 07 August 2027 |
Deadline to send your first quarterly update for April through June 2027 |
| 07 November 2027 |
Deadline to send your second quarterly update for July through September 2027 |
| 31 January 2028 |
Deadline to submit tax return from MTD for Income Tax software for 2026 to 2027 |
| 07 February 2028 |
Deadline to send your third quarterly update for October through December 2027 |
| 07 May 2028 |
Deadline to send your fourth quarterly update for January through March 2028 |
More information on Making Tax Digital can be found here: Making Tax Digital for Income Tax
How can we help?
Hodge Bakshi have a dedicated team in place for Making Tax Digital for Income Tax. We can provide advice on the best software to use to meet your needs and provide expert support throughout the process, helping to ensure that you remain compliant.
To find out if you will be impacted and ask about the support we offer, contact us today.
Author
Melanie O'Connor | ATT | CTA
Director
How can we help?
Based in Cardiff, Hodge Bakshi is a leading firm of Chartered Accountants and Chartered Tax Advisers with over 40 years' experience serving businesses and individuals across South Wales and the UK.
Navigating the complexities of switching from the current self-assessment process to Making Tax Digital for Income Tax will be challenging. As Chartered Tax Advisers, our experienced tax specialists are on hand to provide tailored advice and support you through the switch to digital, ensuring you are compliant with the new digitised tax system.