How to prepare for Making Tax Digital before April 2026
Making Tax Digital for Income Tax becomes mandatory on 6 April 2026 for sole traders and landlords earning over £50,000. Whether you've been tracking this for years or just heard about it, here's your practical checklist.
Your preparation checklist
Check if you're affected
Use HMRC's eligibility checker to confirm whether MTD applies to you. Remember: qualifying income is gross turnover from self-employment and property, before expenses.
Calculate your qualifying income
Add up your total self-employment and property income for the current tax year. If it's over £50,000 (or £30,000 for 2027–28), you'll need MTD software.
Sign up for MTD with HMRC
You need to sign up on GOV.UK through your Government Gateway account. If you have an agent, they can sign you up through their agent services account.
Choose MTD-compatible software
You need software that connects to HMRC's APIs. Check the official compatible software list. Regulas is purpose-built for Making Tax Digital.
Link your software to HMRC
Once you've chosen software, you'll authorise it to access your HMRC data through Government Gateway. This is a one-time setup using HMRC's secure OAuth process.
Start keeping digital records
From 6 April 2026, all income and expenses must be recorded digitally in your MTD software. Start practising now — enter a few test transactions to get familiar.
Understand the quarterly cycle
You'll submit updates four times a year. The first deadline is 5 August 2026. Read our quarterly updates guide for full details.
Talk to your accountant
If you use an accountant, discuss how MTD will work. They may use the software for you (as an agent), or you may use it yourself and share access.
Timeline: what to do and when
📅 Now (February – March 2026)
Check eligibility, sign up with HMRC, choose and set up software, start getting comfortable with digital record-keeping.
🟢 6 April 2026 — MTD starts
From this date, keep all records digitally. Start recording income and expenses in your software for the 2026–27 tax year.
📊 5 August 2026 — Q1 deadline
Submit your first quarterly update covering 6 April – 5 July.
📊 5 November 2026 — Q2 deadline
Second quarterly update covering 6 April – 5 October (cumulative).
📊 5 February 2027 — Q3 deadline
Third quarterly update covering 6 April – 5 January (cumulative).
📊 5 May 2027 — Q4 deadline
Final quarterly update covering the complete year 6 April – 5 April.
💰 31 January 2028 — Final declaration & payment
Submit your final declaration (replaces the tax return) and pay any tax owed.
Common mistakes to avoid
Waiting until April to set up
Don't wait until 6 April to sign up for MTD and choose your software. The sign-up process can take a few days, and you want to be comfortable with your software before Q1 starts.
Using spreadsheets alone
Spreadsheets don't count as MTD-compatible software. You need purpose-built software that connects to HMRC's APIs.
Confusing gross and net income
The £50,000 threshold is based on your gross income (turnover), not your profit. If your turnover is £60,000 but your profit is only £30,000 after expenses, you're still above the threshold.
Forgetting about property income
Self-employment and property income are added together. If you earn £35,000 from self-employment and £20,000 from rental property, your qualifying income is £55,000 — above the threshold.
First-year grace period: HMRC won't issue penalty points for late quarterly updates in 2026–27. But don't rely on this — building good habits from day one means fewer problems later.
If you use an accountant
Having an accountant doesn't exempt you from MTD. However, they can manage everything on your behalf using agent software like Regulas's Enterprise plan. Talk to your accountant about:
- Whether they'll manage your quarterly submissions or if you'll do it yourself
- Which software they recommend or already use
- How you'll share records and approve submissions
- Whether their existing accounting software is MTD-compatible
What if I'm not affected yet?
If your qualifying income is between £30,000 and £50,000, you have until April 2027. If it's between £20,000 and £30,000, you have until April 2028. But there's no harm in starting early — voluntary participation lets you get familiar before it's compulsory.
Don't leave it to the last minute
Join the Regulas waitlist and we'll let you know as soon as early access is available.
Sources: Based on published HMRC guidance on GOV.UK. This is general guidance and not tax advice. Content used under the Open Government Licence v3.0.