Making Tax Digital for Income Tax is now a legal requirement for self-employed people and landlords earning over £50,000. Runway takes care of every quarterly submission, digital record and final declaration — so you can focus on the business.
From 6 April 2026, if your qualifying income from self-employment or property exceeds £50,000, the annual Self Assessment tax return is no longer enough. You are now legally required to keep digital records and submit quarterly updates to HMRC — four times a year, every year.
This isn't optional, and the deadlines are firm. Miss a quarterly submission and HMRC will take notice. Get it wrong and the penalties stack up quickly.
For Runway clients, none of this changes your day-to-day. We plug straight into your accounts, handle every submission on time, and flag anything that needs your attention. MTD becomes invisible — which is exactly how it should be.
Income over £50,000 from self-employment or property
Income over £30,000
Income over £20,000
Setup and maintenance throughout the year
Filed on time, every quarter, without chasing you
Replacing your Self Assessment — handled in full
Right tools, correctly configured from day one
For the 2026/27 tax year there are four submission deadlines. Miss any of them and you're exposed to HMRC penalties. Runway tracks all of these for you — you won't need to think about them.
April – June 2026
Due by 5 August 2026
July – September 2026
Due by 5 November 2026
October – December 2026
Due by 5 February 2027
January – March 2027
Due by 5 June 2027
Final Declaration
Due by 31 January 2028
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If your gross income from self-employment, freelancing, or property (or a combination) exceeds £50,000 in a tax year, MTD applies to you from April 2026. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028.
Your PAYE income doesn't count toward the MTD threshold, but it will still be reported in your final declaration. The threshold is based purely on qualifying income from self-employment and property.
Under MTD, the annual Self Assessment return is replaced by a final declaration — submitted by 31 January each year. It serves the same purpose but sits alongside four quarterly updates throughout the year.
You'll need HMRC-recognised software that can keep digital records and submit directly to HMRC. Runway sets this up for you and manages it throughout the year — you don't need to research or configure anything yourself.
HMRC operates a points-based penalty system for MTD. Each missed submission earns a point, and once you reach a threshold (four points for quarterly filers), a £200 penalty is charged. Further missed submissions add £200 each. Getting it right from the start matters.
Yes. Get in touch and we can get you set up quickly — including software configuration, HMRC registration for MTD, and full ongoing management. The earlier you start, the smoother the transition.
Book a free 30-minute call with a Runway co-founder. No pitch, just practical advice.