Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000 on their 2024/25 return. It extends to those over £30,000 from April 2027 and over £20,000 from April 2028.
- Qualifying income is gross rent plus gross self-employment turnover — not profit.
- Co-owners are each assessed on their own share.
- Companies and partnerships are not in, for now.
- Quarterly updates are due 7 August, 7 November, 7 February and 7 May, with a tax return by 31 January.
- Late filing now earns penalty points: four points means a £200 penalty. No points for late quarterly updates in 2026/27.
Check your gross figures, speak to your accountant and choose software early. For property investors holding personally, it is one more factor in how your portfolio is structured and passed on.
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Six short reads each week on tax, Wills, family wealth and running a business, from John Ireland. Since 1996, three decades of protecting families.