Making Tax Digital for Income Tax Is Live: The Deadlines Oxfordshire Sole Traders and Landlords Need to Know
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax, sometimes shortened to MTD for ITSA, changes the way self-employed people and landlords report income to HMRC. Instead of one Self Assessment return at the end of the year, you keep digital records and send HMRC a short summary of your income and expenses every three months using compatible software. A final declaration then pulls everything together after the tax year ends.
In practice it means more regular, lighter-touch reporting rather than a single annual scramble. Done well, it also gives you a much clearer view of your numbers throughout the year.
Does it apply to you?
Making Tax Digital for Income Tax is being introduced in stages, based on your qualifying income, which is your gross income from self-employment and property before you take off any expenses:
- From April 2026, if your qualifying income is over £50,000.
- From April 2027, if it is over £30,000.
- From April 2028, if it is over £20,000.
If your combined self-employment and property income sits above £50,000, you are in the first wave and the rules already apply to you for the 2026 to 2027 tax year. If you are below the threshold for now, it is still worth preparing, because the bar comes down each year.
The deadlines you need to know
Here are the key dates for the first year, the 2026 to 2027 tax year:
- 6 April 2026: start keeping your records digitally using MTD compatible software.
- 7 August 2026: deadline for your first quarterly update.
- 7 November 2026: deadline for your second quarterly update.
- 7 February 2027: deadline for your third quarterly update.
- 7 May 2027: deadline for your fourth quarterly update.
- 31 January 2028: deadline for your final declaration, submitted straight from your software, which replaces the old Self Assessment return.
One point often causes confusion. You will still file a normal Self Assessment return by 31 January 2027 for the 2025 to 2026 tax year, because that year sits before Making Tax Digital started. Your new quarterly updates simply run alongside it.
What you need to do now
Getting ready comes down to three steps:
- Check whether you are in scope, using your qualifying income figure.
- Sign up for Making Tax Digital for Income Tax with HMRC, which you can do through your accountant.
- Choose MTD compatible software and start keeping digital records from 6 April 2026.
Good bookkeeping is the foundation of all of this. If your records are currently a shoebox of receipts or a spreadsheet updated once a year, now is the moment to move to a cleaner digital system. Our bookkeeping services can get you set up on software that talks directly to HMRC, so the quarterly updates almost look after themselves.
What happens if you miss a deadline?
HMRC has brought in a new points-based penalty system for Making Tax Digital. The good news is that there is a grace period: for the first year, HMRC will not issue penalty points for quarterly updates sent in late. That said, late payment penalties and interest still apply, and it is far easier to stay on top of four light updates than to unpick a whole year of missed records. Building the habit early is the smart move.
How we help Oxfordshire businesses get MTD ready
At Modus, we are helping sole traders and landlords across Oxfordshire move to Making Tax Digital without the stress. We handle the sign-up, set you up on the right software, keep your quarterly updates accurate and on time, and make sure your final declaration is right. Whether you are based in Witney, Abingdon, Oxford or anywhere across the county, we take the admin off your plate so you can focus on running your business.
If you want the fuller background to the change, our earlier guide on what Making Tax Digital means for Oxfordshire businesses is a good place to start. You can also read more about our Making Tax Digital service and how we support Self Assessment and personal tax.
Ready to get set up before 7 August?
Not sure whether Making Tax Digital applies to you, or want a hand getting ready before the first deadline? Book a Free 30 Minute Discovery Call and we will walk you through exactly what you need to do.