Making Tax Digital for Income Tax becomes mandatory on 6 April 2026 for sole traders and landlords whose qualifying income was over £50,000 in the 2024/25 tax year. To be ready, your practice needs an agent services account with client authorisations in place, compatible software, each in-scope client signed up, and a plan for the first quarterly update due on 7 August 2026.
With just under two months to go, this checklist sets out who is affected, what HMRC expects from agents, and the dates to build into your workflow for the 2026/27 tax year.
Who is in scope from April 2026
HMRC uses each client’s Self Assessment return to decide whether they must join. According to GOV.UK guidance on eligibility, the phased timetable is:
| Start date | Qualifying income over | Based on tax year |
|---|---|---|
| 6 April 2026 | £50,000 | 2024/25 |
| 6 April 2027 | £30,000 | 2025/26 |
| 6 April 2028 | £20,000 | 2026/27 |
Qualifying income is the total gross income from self-employment and property, before expenses and tax. Employment income, pensions and partnership income are not counted towards the threshold. So a client with £30,000 of turnover from a sole trade and £25,000 of gross rents has £55,000 of qualifying income and is in scope from April 2026, even if their profits are much lower.
Some people are exempt, for example those who are digitally excluded. Exempt clients still file a Self Assessment return in the usual way.
Questions to ask about each client
- Did their 2024/25 return show gross self-employment and property income over £50,000 combined?
- Have they told you about a letter from HMRC confirming they need to use MTD for Income Tax?
- Could they qualify for an exemption, and do they want you to look into it?
- Who will keep their digital records: the client, your team, or a bookkeeper?
What agents need to have in place
1. An agent services account
MTD for Income Tax runs through the agent services account, not the older HMRC online services for agents. If your firm does not have one yet, apply now. Your existing Self Assessment authorisations are recognised for MTD for Income Tax, so check they have been copied into your agent services account and add any that are missing using the clients’ Self Assessment agent codes.
2. Client authorisation
You must be authorised to act for a client before you can sign them up. Where you are not already authorised, you request authorisation from inside your agent services account and the client accepts it. HMRC also recognises two agent roles:
- Main agent: can do everything, including quarterly updates, the tax return and viewing penalties.
- Supporting agent: can keep digital records and send quarterly updates, but cannot file the tax return.
If a client uses a bookkeeper as well as your firm, agree early who will be main agent and who will be supporting agent.
3. Compatible software
Clients must keep digital records of self-employment and property income and expenses, and send quarterly updates and the tax return using software that works with MTD for Income Tax. Check that your own software is ready, and that any software your clients use for record keeping can share data with it.
4. Clients signed up
Each in-scope client needs to be signed up using HMRC’s sign up service. HMRC’s guidance for agents lists what you need, including the client’s full name, date of birth and National Insurance number, and for sole traders the business name, address and nature of the trade.
Quarterly update deadlines for 2026/27
Quarterly updates are cumulative summaries of income and expenses generated by the software. They do not need tax or accounting adjustments, and they can be corrected during the year. The GOV.UK deadlines are:
| Standard period | Calendar period (if elected) | Deadline |
|---|---|---|
| 6 April to 5 July 2026 | 1 April to 30 June 2026 | 7 August 2026 |
| 6 April to 5 October 2026 | 1 April to 30 September 2026 | 7 November 2026 |
| 6 April 2026 to 5 January 2027 | 1 April to 31 December 2026 | 7 February 2027 |
| 6 April 2026 to 5 April 2027 | 1 April 2026 to 31 March 2027 | 7 May 2027 |
At the Autumn Budget 2025 the government confirmed that HMRC will not apply penalty points for late quarterly updates in the 2026/27 tax year. Late tax returns and late payment can still be penalised, and quarterly updates must still be sent before the tax return can be submitted. Treat the first year as a chance to bed in good habits, not as a year off.
The tax return (final declaration)
After the year end, the client or their main agent adds any other income, makes adjustments and claims, and submits the tax return through compatible software. For 2026/27, the deadline is 31 January 2028. Note that clients joining in April 2026 still need to file their 2025/26 Self Assessment return in the usual way by 31 January 2027.
Your readiness checklist
- Agent services account set up, and Self Assessment authorisations copied across
- List of clients with qualifying income over £50,000 in 2024/25
- Main or supporting agent role agreed for each client
- Software chosen and tested for quarterly updates and the tax return
- Record-keeping approach agreed with each client (who keeps records and in what software)
- Clients signed up before 6 April 2026
- Letters of engagement updated to cover quarterly updates and fees
- Internal deadlines set ahead of 7 August, 7 November, 7 February and 7 May
- Client reminders scheduled for each quarter end
Frequently asked questions
Is the £50,000 threshold based on profit or turnover?
It is based on gross income. Qualifying income is total self-employment and property income before expenses and tax.
Do partnerships need to use MTD for Income Tax from April 2026?
No. Partnership income does not count towards qualifying income, and partnerships are not part of the April 2026 start.
Will clients be fined for a late quarterly update in 2026/27?
HMRC will not apply penalty points for late quarterly updates in the 2026/27 tax year. Penalties for late tax returns and late payment still apply.
Can a bookkeeper send quarterly updates if we file the tax return?
Yes. A supporting agent can keep records and send quarterly updates, while the main agent handles the tax return.
How Engager helps
MTD for Income Tax turns one annual job into five deadlines per client. In Engager you can set statutory and internal deadlines, break the work into job phases and checklists, and track every client on Kanban boards so nothing slips between quarters.
Automated emails and reminders can chase records before each quarter end, and the client portal gives clients one place to upload documents. For the filing itself, Engager integrates with TaxCalc, and you can request HMRC agent authorisation from the client record using the 64-8 integration.
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