Making Tax Digital for Income Tax: help for sole traders and landlords in Durham
MTD for Income Tax is here. We'll make it simple.
Since April 2026, many sole traders and landlords have had to keep digital records and send HMRC quarterly updates. We can set you up, keep you compliant and take the work off your hands.
Does MTD for Income Tax apply to me?
It applies to sole traders and landlords based on their qualifying income: your total income from self-employment and property, before expenses. It's being introduced in three stages.
Qualifying income over £50,000
Qualifying income over £30,000
Qualifying income over £20,000
Some people are exempt, for example if you can't use digital tools because of age, disability or where you live. Not sure where you stand? Ask us and we'll check for you.
What you need to do
Keep digital records
Record your income and expenses in HMRC-recognised software, not on paper.
Send quarterly updates
A short summary of your income and expenses, sent to HMRC every three months.
Submit your tax return
You still finalise your figures and pay any tax by 31 January after the end of the tax year.
Quarterly update deadlines
| Quarter | Update due by |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
Penalties: HMRC is not giving penalty points for late quarterly updates in the first year (2026/27). After that, each missed update earns a point, and reaching four points means a £200 penalty. Late tax returns and late payment are still penalised as usual.
How we help
Check if you're in scope
We work out your qualifying income and when MTD applies to you.
Sign up and software
We sign you up with HMRC and set up recognised software that suits you.
Quarterly updates
We check your records and submit each update on time, every quarter.
Year-end tax return
We finalise your figures, claim every allowance and file your return.
Frequently asked questions
What counts as qualifying income?
Your total self-employment and property income before expenses, so turnover and rent received, not profit. Employment wages, pensions and savings income don't count.
I'm a sole trader and a landlord. Do I add them together?
Yes. Income from self-employment and property is combined. For example, £35,000 of turnover and £20,000 of rent gives qualifying income of £55,000, which is over the current £50,000 threshold.
Do I still need to do a tax return?
Yes. Quarterly updates don't replace it. You still need to finalise your figures and pay any tax owed by 31 January after the end of the tax year.
Can I use a spreadsheet?
Only if it's linked to HMRC-recognised "bridging" software that can submit the updates. Most people find dedicated accounting software simpler, and we can help you choose and set it up.
Does it apply to limited companies or partnerships?
No. MTD for Income Tax is for sole traders and landlords. Limited companies pay corporation tax instead, and HMRC hasn't yet set a date for partnerships.
I've missed the first deadline. What should I do?
Don't panic. There are no penalty points for late quarterly updates in the first year, but you should catch up as soon as possible. Get in touch and we'll get you back on track.
This page is a general guide based on HMRC's rules as of October 2026. Rules can change, so please contact us for advice on your own situation.
Get MTD sorted
Call 07932 078140 or email dawn@abcnortheast.co.uk. Or message us on WhatsApp. Monday to Friday, 9am to 6pm.