Making Tax Digital for Income Tax: Expats, Landlords and Sole Traders
Making Tax Digital for Income Tax (MTD-IT) is no longer a future proposal. It became mandatory from 6 April 2026 for sole traders and landlords whose qualifying income was over £50,000 for the 2024–25 tax year. The rules then widen: the threshold is over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028. This guide explains what the change means for UK property owners, expats, and self-employed people — and where annual Self Assessment still fits.
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What is Making Tax Digital for Income Tax?
MTD-IT is HMRC's digital reporting system for sole traders and landlords registered for Self Assessment. In-scope taxpayers keep digital records, use compatible software, send quarterly updates about their self-employment and property income, and complete an end-of-period statement after the tax year. MTD-IT is about how income is reported; it does not replace the underlying UK tax rules or make non-UK income automatically taxable in the UK.
Who is in scope and when does it start?
The first mandation date was 6 April 2026. It applies to sole traders and landlords whose qualifying income — total income from self-employment and property before expenses, based on the relevant tax-year test — was over £50,000 for 2024–25. The next thresholds are over £30,000 for 2025–26, bringing a start date of 6 April 2027, and over £20,000 for 2026–27, bringing a start date of 6 April 2028. Partnerships are not included in these current sole-trader and landlord start dates. HMRC's eligibility checker should be used for borderline cases and exemptions.
What are the quarterly reporting obligations?
An in-scope taxpayer must keep digital records and send a quarterly update for each source of qualifying business or property income through compatible software. Quarterly updates are summaries of income and expenses, not four separate annual tax returns. After the tax year, the taxpayer still makes an end-of-period statement to finalise the figures and submits the tax-year Self Assessment information needed to calculate the final liability.
How does MTD-IT affect non-resident landlords?
A non-resident landlord can still have UK Self Assessment and MTD-IT obligations for UK property income. The qualifying-income thresholds look at the relevant self-employment and property income before expenses, while residence status affects the wider tax return rather than removing the UK property reporting question. Registration under the Non-Resident Landlord Scheme does not by itself replace Self Assessment or decide MTD eligibility. Check the exact facts with HMRC, especially where there are several properties, joint ownership, or other income sources.
What changes for expats with UK property or self-employment?
Moving abroad does not automatically remove UK reporting duties. An expat with UK rental income or a UK-connected sole trade should separate the MTD question from the residence question: MTD looks at qualifying income and the taxpayer's reporting obligations, while the Statutory Residence Test and treaty rules determine the wider tax position. Keep digital records for the UK activity and retain the documents needed for the annual return, residence analysis, and any foreign tax credit claim.
How does MTD-IT interact with the annual Self Assessment return?
MTD-IT does not eliminate the annual tax calculation. Quarterly updates provide in-year information, but the taxpayer still needs an end-of-period statement and the final Self Assessment process for the tax year. Income tax, National Insurance, reliefs, payments on account, residence claims, and supplementary pages still need to be dealt with under the normal rules. Your first MTD year does not remove the need to submit the previous year's Self Assessment return.
What should annual filers do now?
Work out your qualifying income using turnover before expenses, check the correct mandation year, and use HMRC's eligibility and exemption tools. Choose compatible software, digitise records for UK property or self-employment, and plan for quarterly deadlines. Keep annual-filing documents as well: P60s, rental statements, expense receipts, travel records, SA109 information, and foreign tax evidence may still be needed even when the quarterly updates are routine.
How is Nomadic.Tax approaching MTD support?
Nomadic.Tax does not currently provide the quarterly MTD-IT submission service or act as your MTD-compatible bookkeeping software provider. We do provide annual UK Self Assessment preparation and professional review, including relevant non-resident and property filing work. If you need quarterly MTD support, contact us at hello@nomadic.tax to join the MTD support waitlist; do not treat an annual filing engagement as a substitute for your live quarterly obligations.
Our licensed CPAs, Enrolled Agents, and qualified accountants handle your filing from start to finish, applying all relevant exclusions, credits, and treaties.
See pricing →Frequently asked questions about Making Tax Digital for Income Tax: Expats, Landlords and Sole Traders
Did MTD for Income Tax start in April 2026?
Yes. MTD-IT became mandatory from 6 April 2026 for qualifying sole traders and landlords whose qualifying income was over £50,000 for the 2024–25 tax year. It is not a future-only change.
What are the MTD income thresholds?
The current rollout thresholds are over £50,000 for the 2024–25 test year (start date 6 April 2026), over £30,000 for 2025–26 (start date 6 April 2027), and over £20,000 for 2026–27 (start date 6 April 2028). Qualifying income is total self-employment and property income before expenses.
Does MTD replace my annual Self Assessment return?
No. MTD adds digital records, quarterly updates, and an end-of-period statement. You still need the final Self Assessment process for the tax year and must report the income and claims needed to calculate your liability.
Does a non-resident landlord have to use MTD?
Possibly. Non-resident landlords with UK property income can be in scope if they meet the qualifying-income and other MTD conditions. The Non-Resident Landlord Scheme does not by itself answer the MTD question, so use HMRC's checker and consider the full property and residence facts.
Does Nomadic.Tax submit quarterly MTD updates?
Not currently. We can help with annual UK Self Assessment preparation and review, but we do not claim to provide quarterly MTD-IT submissions. Contact hello@nomadic.tax if you want to join the MTD support waitlist.
