Do I need Making Tax Digital for Income Tax?
MTD for Income Tax applies to UK sole traders and landlords in stages. Enter your turnover to see when it starts for you.
Enter your qualifying income (self-employment plus property turnover, before expenses) for each tax year you know.
Your result shows here.
Quarterly deadlines
| Period | Due |
|---|---|
| 6 Jul to 5 Oct 2026 | 7 November 2026 |
| 6 Oct 2026 to 5 Jan 2027 | 7 February 2027 |
| 6 Jan to 5 Apr 2027 | 7 May 2027 |
| Final declaration, 2026-27 | 31 January 2028 |
What MTD software costs
Bridging tools file figures from a spreadsheet you already keep. Full software adds bank feeds and invoicing.
| Product | Type | Price |
|---|---|---|
| 123 Sheets | Bridging | £19.75/yr ex VAT |
| TaxCalc Quarterly Filer Solo | Bridging | £24/yr ex VAT (year-end extra) |
| Sage Sole Trader and Landlord | Full | Free tier; paid from £7/mo ex VAT |
| QuickBooks Sole Trader | Full | From £10/mo + VAT |
| Xero Ignite | Full | From £16/mo ex VAT |
| FreeAgent | Full | £19/mo ex VAT; free with some UK bank accounts |
Prices from public pricing pages as of July 2026 and may have changed. Check the product is on HMRC's recognised software list before you pay.
Questions
Can I keep using a spreadsheet?
Yes, but only with bridging software that sends the figures to HMRC. A spreadsheet on its own is not compliant.
Is there a penalty for a late quarterly update?
Not for the 2026-27 tax year. From 6 April 2027 each missed quarterly deadline earns a point, and four points means a £200 penalty.
Does HMRC provide free software?
No. Several HMRC-recognised products have free versions, usually with limits on transactions or bank accounts.
Are there exemptions?
Some people are exempt or can apply for an exemption, for example if they are digitally excluded. Check GOV.UK for your situation.
General information, not tax advice. Official guidance: GOV.UK.