6 April 2026. A date that's been circled in accountants' diaries for years. Today marks the start of the 2026/27 tax year — and the first day that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is a legal requirement for a significant portion of UK self-employed people and landlords.
If you earn over £50,000 from self-employment or property (or a combination of both), the way you report your income to HMRC has fundamentally changed. This isn't something you can ignore or deal with at year-end. Here's everything you need to know.
Making Tax Digital for Income Tax: what's changed today
From 6 April 2026, if your qualifying income exceeds £50,000, you are legally required to:
- Keep digital records — using HMRC-recognised software, not spreadsheets or paper
- Submit quarterly updates to HMRC — four times a year, roughly every three months
- Submit a final declaration — by 31 January each year, replacing the traditional Self Assessment tax return
The quarterly deadlines for the 2026/27 tax year are:
- 5 August 2026 (covering April–June)
- 5 November 2026 (covering July–September)
- 5 February 2027 (covering October–December)
- 5 June 2027 (covering January–March)
"MTD isn't just a reporting change — it's a shift in how HMRC expects you to run your finances throughout the year. Quarterly submissions mean quarterly attention to your numbers."
Who is affected right now?
From today, MTD for ITSA applies to you if you are self-employed, a landlord, or both — and your gross qualifying income from those sources exceeds £50,000 in a tax year.
The threshold will extend in the coming years:
- April 2027 — income over £30,000
- April 2028 — income over £20,000
Partnerships, employees, and those with income below the threshold remain on traditional Self Assessment for now — but the direction of travel is clear. MTD is coming for almost everyone eventually.
What do you actually need to do?
If you're within scope and haven't already set this up, the steps are:
- Choose MTD-compatible software — there are a range of options approved by HMRC, from dedicated accounting platforms to apps built specifically for sole traders and landlords
- Sign up for MTD for ITSA — through your Government Gateway account or via your accountant
- Start keeping digital records from 6 April 2026 — the clock started today
- Submit your first quarterly update — due by 5 August 2026
If you're a Runway client, we're already handling this for you. If you're not and you're not sure where to start, get in touch — we can get you set up quickly.
What else changes in the 2026/27 tax year?
MTD aside, there are several other changes worth being aware of as the new tax year begins.
Income tax thresholds remain frozen
The personal allowance stays at £12,570 and the basic rate threshold at £50,270 — frozen until at least April 2028. With wage growth continuing, more people are being pulled into higher tax bands each year through fiscal drag. It's worth reviewing your salary and dividend structure if you're a director to make sure you're drawing income in the most tax-efficient way.
Capital Gains Tax rates
The main CGT rates — 18% for basic rate taxpayers and 24% for higher rate taxpayers on most assets — remain in place following last year's Budget changes. If you're planning a business sale, asset disposal, or any significant exit event, early planning is essential. CGT is one of the areas where good advice well in advance makes the biggest difference to the outcome.
Pension annual allowance
The annual allowance remains at £60,000 for most people. If you haven't maximised your pension contributions in recent years, the carry forward rules allow you to use unused allowances from the previous three tax years — making the start of a new tax year a good moment to revisit this with your adviser.
ISA allowances
The ISA allowance is unchanged at £20,000. A new tax year means a new ISA allowance — a straightforward opportunity to shelter savings or investments from income tax and capital gains tax.
The bigger picture: why this tax year matters
The introduction of MTD for Income Tax is the most significant structural change to UK personal tax administration in a generation. For self-employed people and landlords, it changes the relationship between you and HMRC from an annual conversation to an ongoing one.
That sounds burdensome — and it is, if you're not prepared. But for businesses that already have good financial habits, real-time visibility over their numbers, and the right support in place, it becomes less of a burden and more of a baseline.
At Runway, we've been preparing clients for this for the past two years. Our MTD service covers full setup, ongoing quarterly submission management, and your final declaration — so you're never scrambling to meet a deadline.
If you'd like to understand what MTD means for your specific situation, or if you want to make sure your 2026/27 tax planning is structured properly from day one, book a free call with one of our founders. There's no better time than today.
