Making Tax Digital for Income Tax: what changes and how to get ready
From April 2026, many sole traders and landlords must keep digital records and send HMRC quarterly updates. Here's what that means in practice.
Who has to join, and when
It depends on your qualifying income: your combined turnover (not profit) from self-employment and property, based on your tax return from two years earlier.
Limited companies and partnerships aren't included yet. Some people can apply for an exemption.
What you'll need to do
- Keep your income and expense records digitally, using software that works with Making Tax Digital.
- Send a short summary update to HMRC every quarter.
- Submit a final tax return by 31 January after the tax year ends, as now.
Quarterly update deadlines
Standard quarters run to 5 July, 5 October, 5 January and 5 April. Each update is due by the 7th of the month after the quarter ends: 7 August, 7 November, 7 February and 7 May.
How to make it painless
- Record expenses as they happen — a photo of the receipt and a category takes seconds.
- Invoice from one system so income is already captured.
- Keep business and personal money in separate accounts.
- Book 30 minutes at the end of each quarter to check everything is in.
Where HappyNoodle fits
HappyNoodle keeps your invoices, payments and project costs organised in one place and lets you export them for your accountant or bookkeeping software.
HappyNoodle is not HMRC-recognised Making Tax Digital software and doesn't submit returns to HMRC. You'll still need recognised software, or an accountant, to send your quarterly updates.
No. It's your gross income (turnover) from self-employment and property combined, before expenses.
No. Quarterly updates are summaries. How and when you pay tax doesn't change.
Yes, if you connect them to HMRC with compatible 'bridging' software.
Rules can change. Check the latest guidance on GOV.UK or with your accountant. This guide isn't tax advice. See also our free tools.
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