Making Tax Digital guides for landlords and sole traders
Making Tax Digital for Income Tax is the change that makes UK landlords and sole traders keep digital records and send HMRC a summary of income and expenses four times a year. It started in April 2026 for gross qualifying income over £50,000, reaches £30,000 in April 2027 and £20,000 in April 2028. These guides explain each part of it, in order.
Every guide is in plain English and links to HMRC’s own pages, so you can check what we tell you. They are general information, not tax advice: for your own position, ask your accountant or HMRC. If you only need two answers, they are whether MTD applies to you and when your next quarterly deadline is.
Getting started
What is a quarterly update?
The MTD quarterly update explained in plain English: what HMRC actually wants four times a year, what it isn’t, and how long it takes.
Signing up for MTD with HMRC: the separate step before you can file
Signing up for MTD for Income Tax is a separate job from connecting your software: what the sign-up is, who does it, and how to check it’s been done.
Digital records rules, explained
MTD requires “digital records” and “digital links”: what those words mean in practice, and why a spreadsheet alone doesn’t count.
Cash basis or traditional accounting?
What cash basis and traditional (accruals) accounting mean, a worked example of the difference, and why cash basis is the default for most sole traders.
MTD if you have an accountant
Does MTD change anything if an accountant already does your tax? Usually yes: the typical split of who does what.
Connecting to HMRC: what that permission screen means
The one-time HMRC connection explained: what the Government Gateway screen is asking, what you’re granting, and what QuarterFile can and can’t do afterwards.
Best free MTD software 2026: every option and its limits
There are dozens of free Making Tax Digital tools. A dated look at the genuinely-free options for landlords and sole traders, and the limit each one comes with.
Xero Simple for MTD: what £7 a month buys
What Xero Simple included for MTD at £7 plus VAT a month when we checked in July 2026, who it fits, and the free options to weigh it against.
Free MTD software through your bank: who qualifies
Some banks give business customers a full MTD product free. Who qualifies, what it would otherwise cost, and the catch. Facts dated and verified.
MTD bridging software vs full software: which do you need?
Bridging software files to HMRC from the spreadsheet you already keep; full software replaces the spreadsheet. What each is, dated costs, and the middle route between them.
The cheapest way to do MTD, from £0 upwards
Complying with MTD for Income Tax can cost £0. The full price ladder from free software to an accountant, what each rung buys, and where the catches are. Prices dated.
Why MTD makes you pay for software, and what Parliament said about it
HMRC doesn’t provide MTD filing software, so the cost lands on you. What Parliament’s spending watchdog found about that, and how to keep your share at £0.
Filing your quarters
What goes in each MTD category
Every MTD category for property (SA105) and self-employment (SA103): plain examples of what belongs in each, and where repair ends and improvement starts.
What is the final declaration?
Under MTD the final declaration replaces the Self Assessment tax return: what it settles that quarterly updates don’t, and when the first one is due.
7 August 2026: the first MTD quarterly deadline in history
7 August 2026 was the first-ever Making Tax Digital quarterly deadline. What was due, how it went, and how the first-year soft landing works.
7 November 2026: your second MTD quarterly deadline
7 November 2026 is the second MTD quarterly deadline. What the update covers, why it catches up a missed 7 August, and what a late one costs.
How to file your first MTD quarterly update, step by step
A plain, software-agnostic walkthrough of filing your first Making Tax Digital quarterly update: gather your figures, categorise them, connect to HMRC and file.
How to import your bank statement
Getting a CSV out of your bank, the three columns an import needs, fixing unreadable dates and amounts, and what the duplicate flags mean, in plain English.
Payments on account, explained
What payments on account are, why the July one catches people out, and how they sit alongside your MTD quarterly updates and the final declaration.
How to remember the MTD quarterly deadlines
Four MTD filing dates a year, all on the 7th. The pattern that makes them stick, a one-click calendar download with a built-in warning, and free email reminders.
Will HMRC remind you about MTD deadlines?
What HMRC actually sends before and after an MTD quarterly deadline: letters, account messages and national campaigns, and how to make sure your deadline never depends on them.
Who MTD applies to, and when
MTD for joint landlords, plainly
Own a rental property with someone else? How MTD treats joint income, how your share is applied each quarter, and what still gets settled at year end.
MTD from April 2027: the £30,000 wave
From April 2027, MTD for Income Tax applies at £30,000 of gross income. What wave 2 means, who’s caught, and what to do now (very little).
MTD from April 2028: the £20,000 wave
The third MTD wave brings in gross incomes over £20,000 from April 2028, the smallest landlords and side traders yet. What it means for you.
Do gifts and freebies count as income? For creators, usually yes
The PR box, the gifted product, the comped hotel: when free stuff you receive for promotion is taxable income, how to value it, and why it matters for MTD.
Does MTD apply to content creators and influencers?
YouTuber, streamer or influencer? When MTD for Income Tax applies to creator income, how the thresholds work, and why your platforms count as one business.
Does MTD apply to Uber, Deliveroo and other gig economy work?
Uber, Bolt, Deliveroo or Amazon Flex? How MTD treats gig economy earnings, why every platform counts as one business, and the vehicle costs you can claim.
Does MTD apply to Airbnb and short-let hosts?
Host on Airbnb, Booking.com or Vrbo? How MTD treats short-let income, what the end of Furnished Holiday Lettings changed, and when filing starts for you.
Does MTD apply to Etsy, eBay and online marketplace sellers?
Sell on Etsy, eBay, Vinted or Depop? Why marketplaces now report seller data to HMRC, when selling becomes taxable trading, and when MTD applies.
MTD exemptions: who’s automatically out, and who can apply
Who is automatically exempt from MTD for Income Tax, who can apply for digital exclusion, and the difference between being exempt and simply not mandated yet.
HMRC is signing people up for MTD: what the letter means
From September 2026 HMRC will sign up sole traders and landlords who should be using MTD but have not signed up. What the letter means and what to do.
Fixing problems
Made a mistake in a filed quarter? How fixing works
MTD quarterly updates are cumulative, which makes corrections easy: fix the record, and the next update carries the correction. No amendment forms.
MTD penalties and the first-year soft landing, plainly
How MTD penalty points actually work, what the first-year soft landing means for late quarterly updates, and the one deadline it never covered.
Missed the 7 August MTD deadline? What happens next
Missed the first MTD quarterly deadline on 7 August 2026? What happens (very little, this year), and how to make sure it never happens again.
Filed your update, but HMRC says it wasn’t received? What to check and do
Your software says the update was submitted, but HMRC keeps asking for it. The acknowledged issues behind this, how to check yours, and what to do next.
Not sure when MTD applies to you?
Take the two-minute checkerAlready know your date? Get an email before each deadline.