Making Tax Digital is changing how you do income tax in 2026

Making Tax Digital (MTD) is an HMRC initiative to move tax reporting fully online. From April 2026, self-employed people with income over £50,000 will need to send quarterly digital updates instead of one yearly tax return.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) starts from April 2026. Making Tax Digital is the wider HMRC programme, but MTD for income tax is the part that affects self-employed sole traders and landlords.

MTD for VAT is already live, while MTD for Income Tax Self Assessment begins in April 2026. MTD for Corporation Tax will follow later, although HMRC hasn’t confirmed a start date yet.

Making Tax Digital for Income Tax applies to you if you’re self-employed as a sole trader or a landlord and your qualifying income is over the threshold. From April 2026, this applies if your income is over £50,000, and from April 2027, if your income is over £30,000.

That includes many freelancers, people with side businesses, and property owners who currently submit a Self Assessment tax return.

Qualifying income means the total of your self-employed and/or rental income before expenses. If that number is over £50,000 (or £30,000 from 2027), MTD applies to you. HMRC uses your income from the previous tax year to work this out.

Making Tax Digital compatible software is software that is recognised by HMRC and lets you keep digital records and send the required tax updates electronically to HMRC. For income tax, this means using software to track income and expenses and submit quarterly updates, instead of typing figures directly into HMRC’s website. Only Making Tax Digital compatible software can be used for these submissions.

SumUpʼs Making Tax Digital for Income Tax solution is HMRC-recognised, which means youʼll be able to make income tax submissions right inside your SumUp dashboard, using the income and expense data you already have. Thereʼs no need to switch systems or buy separate MTD software.

Once Making Tax Digital for Income Tax Self Assessment (MTD ITSA) starts from April 2026, you’ll need to send four quarterly updates each year. These updates are simple summaries of your income and expenses, not full tax returns.

Each update is due about a month after the end of the quarter - 7 August, 7 November, 7 February and 7 May each year.

You’ll still submit your final tax return and pay any tax due by 31 January, just like you do today.

Yes — before you connect any HMRC‑recognised software (including SumUp’s), you must sign up for Making Tax DigitalOpens in new window.

Yes, you can import a CSV file with the transactions from your bank. If you use a SumUp Business Account, everything shows up automatically, saving you time and avoiding manual errors.