Same rules as everyone else in scope — but here's the detail mapped to your actual situation: what counts as your income, when you're actually required to start, what "digital records" really means, and what happens if something slips. (436,000 of the 864,000 people mandated this year missed their first deadline — this page exists so you're not one of them next time.)
HMRC calls it your qualifying income — and it's not your profit. It's your gross turnover from self-employment, before you deduct any expenses, allowances or reliefs. If you also have rental income, that's added on top.
You've been required to use MTD since 6 April 2026. If you're not registered yet, do it now — HMRC starts auto-enrolling non-registered taxpayers from September 2026.
You'll be brought in from this date, based on your 2025/26 Self Assessment return.
Expected, but not yet confirmed in law as of writing. Worth checking closer to the date.
Quarterly updates due 7 Aug, 7 Nov, 7 Feb, 7 May. Final Declaration and balancing payment due 31 January.
New to self-employment: you don't need to start using MTD until after you've submitted your first Self Assessment tax return. HMRC checks that return, and if your income is over £30,000, they'll tell you when you need to start.
Income dropped off? If your qualifying income falls below the relevant threshold for three tax years in a row, you can choose to opt out of MTD and go back to ordinary Self Assessment.
You can't file through the old Self Assessment portal or on paper once you're mandated. You need software that can create and store digital records, send quarterly updates, and submit your Final Declaration.
You don't have to abandon spreadsheets entirely — "bridging software" lets a compatible spreadsheet be digitally linked and submitted through it.
One rule worth knowing: once your records are digital, moving data between two pieces of software has to happen through an automated digital link, not by manually retyping or copy-pasting figures across.
If you run more than one business: each sole trader business (and any property business) needs its own separate quarterly update, submitted separately, four times a year. Two businesses means eight submissions a year, not four.
Full software guidance on GOV.UK →Late submissions: one point per missed deadline, capped at one point per deadline even with more than one business. 4 points = £200 fine, then £200 for every further late submission.
Soft landing: no points for late quarterly updates specifically during 2026/27. This does not cover the Final Declaration.
| Timing | What happens |
|---|---|
| Days 1–15 late | No penalty |
| Day 31+ late | 3% of the tax owed as of day 15, plus a further 3% as of day 30 |
| Ongoing from day 31 | 10% a year accruing daily on whatever remains unpaid |
By purchasing, you confirm you want immediate access to this digital download and agree to our Terms & Conditions, including waiving your 14-day cancellation right once the file is downloaded. See our Privacy Policy.
Yes, if the self-employed side counts as trading income on your Self Assessment. Your PAYE salary itself doesn't count toward the threshold — only the self-employment turnover does.
Yes. Self-employment and property income are combined for the qualifying income test, even if neither alone reaches the threshold.
No — CIS just changes how tax is deducted at source. You're assessed as an ordinary sole trader against the same thresholds and dates.
Category totals for income and expenses for that period — not a detailed transaction list, and not a tax calculation. It's a running summary, not a mini tax return.
Not until after your first Self Assessment tax return is submitted. HMRC reviews that return and tells you if and when you need to start.
Yes, if your qualifying income stays below the relevant threshold for three tax years in a row, you can opt out.