Will MTD affect me?
Enter your self-employed and property income before expenses. The answer appears straight away; nothing is sent or stored.
You’re in the second group. The first-year penalty grace given to the 2026 group doesn’t apply, so start your digital records early.
A guide, not tax advice. HMRC can exempt some people, and rules for joint, partnership and foreign income differ.
Three start dates, set by your qualifying income.
Add your self-employed takings and your rent together, before expenses. That total, your qualifying income, sets your start date.
Already in force. No penalty points for late quarterly updates in 2026/27 only.
The next band down, judged on 2025/26. No first-year grace on penalties.
The last confirmed wave, judged on your 2026/27 return.
No date set. Keep filing your yearly return as now, and check again each year.
What changes once you’re in.
The tax you pay and when you pay it stay the same. What changes is how you keep the books and how often you tell HMRC.
Digital records
Income and costs kept in software as you go.
Four updates a year
A year-to-date summary sent to HMRC by 7 Aug, 7 Nov, 7 Feb and 7 May.
A yearly tax return
Still due 31 January after the year ends, now sent from your MTD software.
Penalty points
One point for each missed deadline. Four points means a £200 penalty.
Common questions
Do I still send a yearly tax return?
Yes. The four quarterly updates are short year-to-date summaries. After the year ends you still send a tax return (the final declaration), now from your MTD software, by the same 31 January deadline.
I have a job and a small rental. Does my salary count?
No. Only gross self-employment income and gross property income count towards the threshold. Wages, pensions, dividends and savings interest don’t.
What if I have both a business and a rental?
Add them together. £28,000 of takings plus £6,000 of rent is £34,000 of qualifying income, which puts you in from April 2027.
Can I use a spreadsheet?
Only with bridging software that sends the figures to HMRC digitally. Retyping figures by hand between systems isn’t allowed. .EWA’s spreadsheet bridge arrives this winter.
Can .EWA handle all of this for me?
That’s what it’s being built for: records kept as money moves, each update built and checked by Shield, and a receipt of what HMRC received. Filing switches on once HMRC approves .EWA’s software.
Get ready before your start date.
Join the founding list for first access and two months free. We’ll have you ready before your next update.