Making Tax Digital for Income Tax: The Next Deadline and the £30,000 Threshold
Making Tax Digital for Income Tax is now live for the first wave of self-employed individuals and landlords. Here is what the next quarterly deadline means, who will be brought in from April 2027 under the lower £30,000 threshold, and why your 2025/26 tax return matters.
For many self-employed individuals and landlords, Making Tax Digital (MTD) for Income Tax is no longer something on the horizon. It is here.
Since April 2026, those within the first wave of MTD have been required to keep digital records and submit quarterly updates to HMRC. We are pleased to say that we have successfully assisted many clients with their first quarterly filing, and attention is now turning to the next deadline.
Upcoming MTD reporting deadlines
| Quarter | Period covered | Filing deadline |
|---|---|---|
| Q1 | 6 April 2026 to 5 July 2026 | Deadline passed |
| Q2 | 6 July 2026 to 5 October 2026 | 7 November 2026 |
| Q3 | 6 October 2026 to 5 January 2027 | 7 February 2027 |
| Q4 | 6 January 2027 to 5 April 2027 | 7 May 2027 |
As we approach the second filing deadline, it is important to stay on top of your bookkeeping and administration. Leaving records until the last minute can make quarterly reporting significantly more stressful than it needs to be.
More taxpayers will be brought into MTD next year
As we move into the busy Self Assessment season, one question keeps coming up:
"Will I need to join Making Tax Digital next year?"
For many, the answer may be yes.
From 6 April 2027, the MTD threshold will reduce to those with more than £30,000 of gross income from self-employment and/or property income. This test is based on gross income before expenses, not profit.
We have already identified a number of self-employed individuals and landlords who may be caught by the new rules without realising it. Many assume they are below the threshold because their profits are modest, when in fact their turnover or rental income exceeds £30,000.
Even more importantly, HMRC will generally look at your 2025/26 tax return to determine whether you fall within the regime from April 2027. That means the tax return currently being prepared could determine your future MTD obligations.
Do not wait until HMRC writes to you
If you think you may be close to the £30,000 threshold, it is worth reviewing your position now rather than waiting until next year.
Early preparation gives you time to:
- understand whether MTD will apply to you;
- select suitable software;
- establish digital record-keeping procedures; and
- avoid a last-minute rush before April 2027.
If you would like us to review your circumstances, we would be happy to arrange an exploratory consultation.
A reminder for non-residents
Alongside MTD enquiries, we continue to receive a growing number of questions from expatriates regarding UK tax residency and non-resident tax returns.
One issue we frequently encounter is individuals incorrectly reporting their position because they do not fully understand their UK tax residence status. Determining whether you are UK resident or non-resident is often the starting point for understanding how your income should be taxed.
For non-residents, it is important that returns are filed correctly and that the relevant residence pages are completed where required. Unfortunately, this is an area where mistakes are more common than many people realise.
Need help?
Whether you are:
- approaching the next MTD deadline;
- unsure if you will be caught by the £30,000 threshold from April 2027;
- a landlord wondering if your rental income counts towards the test; or
- uncertain about your UK residence status,
our Expat UK Tax team would be happy to help.
The clients who are preparing now will have a much smoother transition than those who leave it until HMRC's letter arrives. If you would like to discuss your position, please get in touch.
This article is general information, not personal tax advice. Please seek specialist advice before acting, as your obligations depend on your own circumstances and on the law and guidance in force at the relevant time.
