If you’re a sole trader or landlord in Slough and you’ve heard the phrase “Making Tax Digital” being thrown around more urgently this year, there’s a good reason: it’s no longer a future change. As of 6 April 2026, Making Tax Digital for Income Tax (MTD ITSA) became mandatory for the first group of taxpayers — and the first quarterly filing deadline has already passed. If you missed it, or you’re not sure whether you’re affected, this guide covers exactly what you need to know.
What Actually Changed on 6 April 2026
For over 30 years, most self-employed people and landlords in the UK have filed one Self Assessment tax return per year, in January. That system is now being phased out — described by industry commentators as the biggest shake-up to tax reporting in a generation.
Under Making Tax Digital for Income Tax, instead of one annual return, you now need to:
- Keep digital records of your income and expenses throughout the year (paper records and basic spreadsheets without MTD-compatible software are no longer sufficient)
- Submit a quarterly update to HMRC using MTD-compatible software
- Submit a final declaration at the end of the tax year to confirm the total figures
The first quarterly period ran from 6 April to 5 July 2026, with a filing deadline of 7 August 2026. If that deadline has already passed you by, you’re not alone — but it’s important to get compliant for the next quarter rather than letting it slide further.
Am I Affected? The Threshold Explained
This is the question we’re asked most often at our Slough office, and the answer depends on your gross income — not your profit — from self-employment and/or property combined.
| From | Threshold (gross income, 2024/25 or relevant prior tax year) |
|---|---|
| April 2026 | Over £50,000 |
| April 2027 | Over £30,000 |
| April 2028 | Over £20,000 |
A few important details that catch people out:
- It’s gross income, not profit. If your rental income was £55,000 but your actual profit after expenses was £12,000, you’re still over the threshold and in scope.
- Self-employment and property income are combined. If you earn £30,000 from a trade and £25,000 from rental property, your combined qualifying income is £55,000 — putting you in Phase 1, even though neither figure alone crosses £50,000.
- Limited company landlords are not affected. If you operate through a limited company, you continue filing Corporation Tax returns as before — MTD for Income Tax only applies to individuals registered for Self Assessment.
- The threshold looks backwards. Your 2026 obligation is based on the income reported on your 2024/25 Self Assessment return — so this isn’t really “new” information; it’s already sitting in a return you’ve filed.
If you’re close to the threshold but under it this year, it’s worth planning ahead rather than waiting — the £30,000 and £20,000 phases arrive in 2027 and 2028 respectively, and preparing your systems now avoids a last-minute scramble.
What You Actually Need to Do
1. Confirm whether you’re in scope. Check your most recent Self Assessment return for your combined gross self-employment and property income. If you’re unsure how “qualifying income” is calculated in your specific situation — joint property ownership, multiple income sources, a mix of trade and rental income — this is exactly the kind of detail worth getting checked by an accountant rather than guessing.
2. Choose MTD-compatible software. HMRC will no longer accept manual submissions from those in scope. You’ll need software that can maintain digital records and file quarterly updates directly. Options range from full accounting platforms (Xero, QuickBooks, FreeAgent, Sage) to lighter-weight bridging software for simpler situations.
3. Start keeping digital records now, even mid-year. You don’t need to wait for a new tax year to begin — the sooner your records move into a compliant digital format, the less disruptive the transition.
4. Diarise your quarterly deadlines. Each quarter’s update is due one month after the quarter ends. Missing these isn’t just an administrative slip — HMRC’s new points-based penalty system applies to late digital submissions in the same way it applies to late annual returns.
5. Understand what the quarterly update actually involves. It’s a running summary of income and expenses for that period — not a full tax calculation. The final declaration at year-end is where allowances, reliefs, and your actual tax liability are confirmed.
Common Questions From Slough Clients
“I run a small property portfolio in Langley and Chalvey — does this apply to me?” If your gross rental income across all properties exceeds £50,000 (based on your 2024/25 return), yes. It doesn’t matter whether that comes from one large property or several smaller lets — it’s the total that counts.
“I have a trade business and a rental property — do I add both incomes together?” Yes. HMRC combines your self-employment and property income into one “qualifying income” figure for the purposes of the threshold.
“What if my income drops below the threshold next year?” Once you’re required to join MTD for Income Tax, you generally stay in the system going forward, even if your income later falls — HMRC has confirmed limited circumstances for exiting, mainly tied to ceasing the income source altogether.
“Can my accountant handle the quarterly submissions for me?” Yes. This is one of the main reasons demand for proactive, cloud-software-literate accountants has increased sharply this year — many landlords and sole traders would rather hand quarterly compliance to a professional than manage four filing deadlines a year themselves on top of everything else.
Why This Matters More If You’re Local to Slough
Slough’s mix of buy-to-let landlords near the station, contractors working the M4 corridor into Heathrow, and small trades businesses across the Trading Estate means a large number of local self-employed people and landlords are likely to fall into this first £50,000 phase — particularly anyone combining a trade income with rental property, which is common in this area.
A generic online-only provider can file your quarterly updates, but a local accountant who understands the specific mix of income Slough clients typically have — trade income alongside a rental property, or CIS subcontractor income alongside a buy-to-let — is often better placed to make sure your qualifying income is calculated correctly from the start, rather than catching an error after you’re already mid-way through the tax year.
How Direct Assist Accountants Can Help
We’re already supporting Slough clients through this transition using Xero, QuickBooks, FreeAgent, and KashFlow — all MTD-compatible platforms we’re accredited partners with. If you’re not yet sure whether you’re affected, or you’ve missed the first quarterly deadline and want to get back on track without penalties compounding, get in touch for a free consultation and we’ll walk through your specific situation.
If you’re a landlord specifically, our dedicated landlord accounting service already covers Section 24 and Capital Gains Tax planning alongside MTD compliance — so this isn’t an extra bolt-on, it’s part of how we already manage property clients.
This article reflects HMRC’s Making Tax Digital rules as confirmed for the April 2026 rollout. Thresholds and requirements may be subject to further government guidance — for advice specific to your situation, speak to a qualified accountant.