Top 3 MTD Checks to Make Before 6 April 2026

With the first phase of Making Tax Digital (MTD) for Income Tax going live on Monday, landlords and sole traders with an annual gross income of above £50,0000 will have to stop treating tax prep as a once-a-year exercise. From now on, you will have to file four quarterly updates and one Final Declaration.

This shift from one annual tax return to five may appear daunting at first, it can be made quite easy if you follow these four essential MTD checks before you begin complying with MTD requirements from 6 April 2026.

Check If You Cross the £50,000 MTD Threshold

The first thing every landlord and sole trader needs to do is confirm whether Making Tax Digital (MTD) applies to them this year. For this, they need to check their gross qualifying income (not profit) and see if it was above the £50,000 threshold in the tax year 2024/25 (this is the tax year HMRC is using to determine your eligibility for MTD this year).

Imagine earning £28,000 from freelance work and £25,000 from rental property. Your combined gross income in this situation is £53,000, meaning you fall within the scope of MTD from April 2026. Taking a moment now to review your 2024/25 figures can prevent headaches later and give you enough time to get your records and software in order.

By knowing exactly where your income sits, you can plan your digital record-keeping, select the right software, and avoid being caught out by quarterly submission deadlines. It’s a small step now that saves a lot of stress once MTD begins.

MTD Thresholds by Year

Make Sure Your Software Is MTD-Ready

Making Tax Digital fundamentally changes how you keep and report your financial records. And without the right software, you risk errors, missed deadlines and penalties.

The right MTD-ready software should do more than just store numbers. It should automatically record every transaction (through features like bank feed integration and receipt capture), organise income and expenses, and ensure that each entry is correctly reported to HMRC.

For landlords, this means rental income, service charges, and mortgage interest are all tracked digitally and made ready for quarterly submissions. For sole traders, it means self-employment income and business costs are properly captured without you having to chase receipts at the end of the quarter.

Starting with the proper software right now gives you time to familiarise yourself with the setup, import historical transactions, and get comfortable with quarterly reporting.

Understand the Quarterly Filing Deadlines

One of the biggest changes under Making Tax Digital is that you no longer file a single annual Self Assessment. Instead, you’ll need to submit four quarterly updates throughout the year, plus a Final Declaration. This shift requires a different approach to bookkeeping and tax planning.

Your records must be kept up to date digitally, and submissions must be made on time each quarter. Missing deadlines can trigger HMRC’s points-based late filing penalties, which can accumulate quickly.

Planning is therefore essential. By building quarterly deadlines into your workflow now, you can spread the work evenly, reconcile accounts regularly, and avoid stressful last-minute filings. Preparing in advance also gives you time to address any software or record-keeping issues before the first submission is due.

MTD Quarterly Submission Deadlines

Conclusion

Preparing for Making Tax Digital isn’t just about installing software; it’s about understanding whether MTD applies to you, choosing the right tools, keeping accurate digital records, and planning for quarterly submissions.

By tackling these key areas now, landlords and sole traders can move into MTD with confidence, ensuring a smooth transition to quarterly reporting and avoiding last-minute stress.