It applies to sole traders and landlords with qualifying income over: £50,000 from 6 April 2026 £30,000 from 6 April 2027 The Government plans to extend this to £20,000+ from 2028 (subject to legislation). If you are below the threshold, then you will remain on standard Self Assessment.

No. Partnerships are NOT included in the MTD rollout. HMRC has postponed partnership mandation indefinitely and has set no start date. LLPs and limited companies are also NOT included in Income Tax MTD.

Quarterly updates are digital summaries of income and expenses for each MTD income source. HMRC receives category totals, not every transaction. Errors can be corrected in a later update.

The Final Declaration is the MTD equivalent of the annual tax return for business and property income. It gathers all quarterly updates, applies adjustments, and confirms the final income tax position. The deadline is usually 31 January.

If you have only Self-employment income and/or UK property income, then the Final Declaration completely replaces the SA100. You do not need a separate Self Assessment return. This applies to many simple sole-trader and landlord clients.

You still need an SA100 if you have income outside MTD, including: Dividends Capital gains Foreign income Trust income Partnership income Certain relief claims Complex investment income

Yes but you must choose this within your software before submitting the first update of the year.

You must keep digital records and use MTD-compatible software. The software must store transactions, update records, create quarterly totals, and send your Final Declaration. You may apply to HMRC for an exemption if you cannot reasonably use software due to age, disability, location, or other approved reasons.

Late or missing quarterly updates and late tax payments may lead to penalties and daily interest under HMRC’s updated late-submission regime.