Everything You Need To Know If You Are Self-employed Or A Landlord In The UK. What Changes From April 6, 2026 - Ziarul Românesc UK - News From Great Britain

From 6 April 2026, HMRC is introducing one of the most significant changes in recent years for people who are self-employed or earn income from property in the UK.

The system is called Making Tax Digital for Income Tax (MTD for Income Tax) and is gradually replacing the traditional way of reporting through Self Assessment.
If you are one of those affected, it is not enough to wait for a letter from HMRC. It is your responsibility to check and prepare.

Who enters the system and when

MTD for Income Tax applied in stages, depending on qualifying income: eligible gross income from self-employment and/or property, before any expenses:

Qualifying income	Date of entry into MTD
Over £50,000	April 6, 2026
Over £30,000	April 6, 2027
Over £20,000	April 6, 2028

The threshold is determined based on the fiscal year 2024/25 for those entering from 2026, respectively the previous years for the other waves.

What does “qualifying income” mean and why does it matter?

This is perhaps the most important detail that many taxpayers get wrong.
Qualifying income it is not your profit. It is the gross income, i.e. the total amount before expenses derived from:
– self-employment activity, and/or
– income from property (rents)
The two sources add up. If you have income from both, the threshold applies to the combined total, not separately.
Concrete example:
∙ Freelancing income: £30,000
∙ Rental income: £25,000
∙ Total qualifying income: £55,000 → enter MTD from 6 April 2026
That’s why many taxpayers who think they’re “not getting in” find they’re actually already covered.

Jointly owned properties

If you own a property with your partner or spouse, the income is split 50/50 between you by default. Everyone calculates qualifying income individually, based on your own quota. If you have declared a different proportion to HMRC (via form 17), that applies. Therefore, two landlords with the same property may have different obligations to MTD.

Who is not logged in (for now)

Not everyone is affected by MTD for Income Tax. Excluded or deferred categories include:
∙ Partnerships (will be included later, in a separate step)
∙ Trusts and LLPs
∙ Persons with income exclusively from PAYE (employees with no other eligible sources)
∙ Persons with income exclusively from investments or dividends (without self-employment or property)
∙ Cases of digital exclusion — people who, for well-founded reasons, cannot use digital services

HMRC also provides for the possibility of applying for individual exemption in special circumstances. Each case must be checked separately — there is no one-size-fits-all rule.

What actually changes: how MTD for Income Tax works

MTD for Income Tax it’s not just “another reporting platform”. It means a fundamental change in the way you manage your records and communicate with HMRC throughout the year.

Mandatory digital evidence
You will need to record your income and expenses digitally, using software compatible with HMRC. Regular spreadsheets (Excel, Google Sheets) are not enough on their own. If you want to use them, you need one bridging software to liaise with HMRC systems.
HMRC publishes an up-to-date list of compatible software, including some free options. There is also the possibility of HMRC’s own service, although commercial options remain the most used.

Quarterly updates
You will need to send 4 updates a year to HMRC, one for each tax quarter. The terms are:

Quarter	Period	deadline
T1	April 6 – July 5	7 august
T2	July 6 – Oct. 5	November 7
T3	6 oct – 5 ian	February 7
T4	6 ian – 5 apr	May 7

Important: Quarterly updates are not full tax returns. They are summaries of income and expenses by category, simpler than a mini-tax return. Their purpose is to give HMRC a real-time picture of your tax situation, not to calculate your final tax.

End of Period Statement (EOPS)
At the end of the fiscal year, after the 4 quarterly updates, you will send a End of Period Statementa confirmation of the annual figures for each source of income (self-employment and/or property), with possible adjustments.

Final Declaration
Final Declaration replaces the current Self Assessment Return. Here you include all other income (PAYE, dividends, investments, etc.) and confirm your full tax statement for that year. This is the statement on the basis of which the final payment tax is determined. The full order is:
Quarterly Updates → End of Period Statement → Final Declaration
Confusion of these three steps is one of the most common sources of error and confusion.

Timeline: What Happens and When (for those entering from 2026)

Now (2025/26)
└── Submit Self Assessment for 2024/25 (deadline: 31 January 2026)

April 6, 2026
└── Start keeping track digitally with compatible software
└── First quarter MTD: 6 Apr – 5 Jul 2026

7 august 2026
└── First Quarterly Update (Q1) — deadline

January 31, 2027
└── Submit Self Assessment for 2025/26 (last year under old system)
└── Final Declaration deadline for 2025/26 in MTD

… and so on, quarterly, for each subsequent fiscal year

Beware of overlap: Those entering the MTD from 6 April 2026 will continue to submit Self Assessment in the classic system for the year 2025/26 (deadline 31 January 2027), simultaneously with the first MTD obligations. This transition period can be confusing if you are not prepared.

The voluntary pilot: you can enter now, before the obligation

HMRC already has an active pilot for MTD for Income Tax. If you want to familiarize yourself with the system before it becomes mandatory, you can opt for voluntary enrollment now, provided you use compatible software and meet certain pilot eligibility criteria.
This is one of the best ways to prepare without the pressure of a fixed deadline.

Agent Authorization: More complicated than in Self Assessment

If an accountant or tax agent deals with your situation, the authorization process in MTD is different from the classic Self Assessment and takes more time.
Your agent must have one Agent Services Account (ASA)a separate, MTD-specific account, different from the standard HMRC agent account. Your authorization as a client of the agent is done through a separate process from the usual one.
If your agent does not yet have an ASA or has not worked with MTD, now is the time to talk to them, not a week before April 6, 2026.

Cash basis or accruals: which accounting method do you use?

MTD for Income Tax does not impose a specific accounting method. Both cash basis (record when you actually receive/pay) and accruals basis (record when the obligation arises) are accepted. If you already use one of them in Self Assessment, you can continue it in MTD.

The penalty system: how it works in MTD

MTD for Income Tax introduces a new points-based penalty system, different from the fixed penalties in the current system.
How it works:
∙ Each late quarterly update earns you a penalty point
∙ When you accumulate a certain number of points (the threshold depends on the frequency of the obligation), you receive a financial penalty
∙ Points may expire if you meet the deadlines for a consecutive period

Important for 2026/27: HMRC has confirmed it will not apply penalty points for quarterly updates delayed in the first fiscal year (2026/27). This is an adjustment period.
However, this indulgence does not cover everything:
∙ Penalties for Final Declaration delayed remain in force
∙ Penalties for late tax payment are not suspended
∙ Penalties for Late Payment it applies regardless of the BAT stage
In other words, “the first year without penalties for quarterly updates” doesn’t mean you can ignore the system.

Don’t wait for the letter from HMRC

HMRC can send notices to eligible people, but the absence of a letter does not mean you have no obligations. Verification of eligibility and preparation for the new system is the taxpayer’s responsibility.

Here’s what you should do if you approach or exceed the relevant threshold:
1. Check your qualifying income — combined gross income from self-employment and/or property for 2024/25
2. Choose compatible software — check HMRC’s list or talk to your accountant
3. Check your agent status — does he have an Agent Services Account? Has he worked with MTD before?
4. Submit Self Assessment on time for 2024/25 (deadline 31 January 2026) and 2025/26 (deadline 31 January 2027)
5. Consider the volunteer pilot if you want to familiarize yourself with the system ahead of time

Conclusion

Making Tax Digital for Income Tax it is no longer a future plan, it is a concrete change starting from April 6, 2026 for the first category of targeted taxpayers.
If you have qualifying income over £50,000 from self-employment and/or property, the time to prepare is now, not March 2026.
Early preparation makes the difference between a controlled transition and a period of confusion, error and tax risk. If you’re not sure if you’re getting into the system, the safest step is to check with a specialist before the start of the new tax year.

The information in this article is general in nature and does not constitute tax advice. Every taxpayer’s situation is individual — for personalized advice, consult a chartered accountant or tax agent.