The new rules at a glance
Making Tax Digital (MTD) for Income Tax replaces the single annual Self Assessment return with digital record-keeping and four short quarterly updates a year, sent through software. It is being phased in by income:
| Gross income (turnover) | MTD mandatory from | First quarterly update due | Checked against |
|---|---|---|---|
| £50,000+ | 6 April 2026 — already in force | 7 August 2026 | 2024/25 tax return |
| £30,000 – £50,000 | 6 April 2027 | 7 August 2027 | 2025/26 tax return |
| £20,000 – £30,000 | 6 April 2028 | 7 August 2028 | 2026/27 tax return |
| Under £20,000 | No start date announced yet | ||
The thresholds are gross income — your turnover from self-employment and rental property combined, before any expenses. Not profit. A landlord with £55,000 of rent and £30,000 of costs is in the first wave.
New here? Start with MTD for Income Tax explained in plain English, or go straight to every deadline for 2026–2028.
Why we're building NippyTax
The big names — FreeAgent, Xero, QuickBooks, Sage — are full accounting suites. They're good software, but if you're a landlord with three properties or a self-employed consultant with simple books, you don't want invoicing modules, stock control and a chart of accounts. You want your four quarterly updates done quickly, correctly, and cheaply.
That's NippyTax: software built for MTD for Income Tax and nothing else. Type in (or import) your income and expenses, see what each quarter looks like, press send. No accountancy degree required. It's in development now — the waitlist above gets you early access and honest deadline reminders in the meantime.
Frequently asked questions
What is Making Tax Digital for Income Tax?
It is the new law that requires sole traders and landlords to keep digital records and send HMRC a short update every quarter through software, instead of one Self Assessment return a year. It became mandatory on 6 April 2026 for people with gross income over £50,000. Read the plain-English explanation.
Does MTD apply to me?
It depends on your combined gross income (turnover, not profit) from self-employment and property: over £50,000 — you are already in since April 2026; £30,000–£50,000 — you join in April 2027; £20,000–£30,000 — April 2028. Use the checker above for your exact dates.
What happens if I ignore it?
HMRC uses a points system: each late quarterly update earns a point, and at four points you get a £200 penalty, with another £200 for every late submission after that. Paying late adds percentage penalties on top. See MTD penalties explained.
Is NippyTax HMRC-recognised?
Not yet — NippyTax is in development and will go through the HMRC recognition process before launch. MTD submissions can only be made with software that has completed that process, which is why we are running a waitlist rather than selling anything today.
Do I have to buy accounting software?
You have to use software that can send MTD updates, but it does not have to be a full accounting suite. Bridging tools can file from spreadsheets, and NippyTax is being built to make quarterly updates dead simple without the bookkeeping baggage. See how the options compare.