Making Tax Digital has applied to you since 6 April 2026

Qualifying income is the total of self-employment and property income before expenses (turnover), not profit. Employment (PAYE) income, dividends, State and private pensions, and an individual partner's share of partnership profit do not count towards qualifying income.

Each quarterly update is due by 7 August, 7 November, 7 February and 7 May. Standard quarterly update periods run cumulatively from 6 April to 5 July, 5 October, 5 January and 5 April.

Each missed quarterly update or tax return deadline earns one penalty point; at 4 points a £200 penalty is charged, plus £200 for each later missed deadline. There are no penalties for missing a quarterly update deadline for the 2026-27 tax year, but records and updates are still required and late tax returns and late payments are still penalised.

MTD for Income Tax does not change how tax is paid or the payment due dates.

Automatic exemptions include qualifying income of £20,000 or less, no National Insurance number before the start of the tax year, trustees (SA900), personal representatives, non-resident companies (SA700), and people acting through a power of attorney or deputy. At the Budget on 28 October 2026 the government said these groups will be exempt from MTD for Income Tax until further notice: people eligible for qualifying care relief, non-UK resident foreign entertainers and sportspeople, and expected non-resident customers. Secondary legislation will be introduced before April 2027.

A joint owner counts only their share of jointly owned property income towards qualifying income (e.g. £50,000 split equally gives £25,000 each). For jointly let property a landlord may send quarterly updates with income only and add the expenses after the year end by resending the fourth update before the tax return.