Making Tax Digital for Tradespeople: What to Do Before 7 November 2026

If you are a self-employed tradesperson and your qualifying income on your 2024/25 tax return was over £50,000, you have been in Making Tax Digital (MTD) for Income Tax since 6 April 2026. That means keeping digital records and sending HMRC a quarterly update through compatible software. Your next update, covering 6 April to 5 October 2026, is due by 7 November 2026.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax is HMRC’s new way for sole traders and landlords to report their income. Instead of pulling everything together once a year, you keep digital records of your income and expenses in HMRC-recognised software and send HMRC a short summary every three months. After the tax year ends, you submit a final declaration that replaces the Self Assessment tax return.

Does MTD apply to me as a tradesperson?

It applies if you are self-employed (a sole trader) and your qualifying income is over the threshold. Qualifying income is your gross income from self-employment and property combined, before expenses. That matters for trades: a plumber who turns over £60,000 but makes £35,000 profit is still in scope, because the test uses turnover, not profit.

Thresholds by start date:

• From 6 April 2026: qualifying income over £50,000 (based on your 2024/25 return)
• From 6 April 2027: qualifying income over £30,000 (based on your 2025/26 return)
• From 6 April 2028: qualifying income over £20,000 (based on your 2026/27 return)

If you trade through a limited company, MTD for Income Tax does not apply to the company’s profits. Partnerships are not included yet.

MTD deadlines for 2026/27

Every 2026/27 date you need:

• 7 August 2026: quarterly update 1 (6 April to 5 July)
• 7 November 2026: quarterly update 2 (6 April to 5 October)
• 7 February 2027: quarterly update 3 (6 April to 5 January)
• 7 May 2027: quarterly update 4 (6 April to 5 April)
• 31 January 2028: final declaration for 2026/27, which replaces your tax return

Each update is cumulative: the November update covers everything from 6 April to 5 October, not just the last three months. You still submit your 2025/26 tax return the usual way by 31 January 2027.

What goes into a quarterly update?

A quarterly update is a summary of your business income and expenses by category, created by your software from your digital records. It is not a tax return, and no tax is paid when you send it.

Does MTD change when I pay tax?

No. MTD changes how you report, not when you pay. If you pay through Self Assessment, your payment dates stay the same: usually 31 January (any balance plus your first payment on account) and 31 July (your second payment on account). Each payment on account is normally half of the previous year’s bill.

What happens if I miss a quarterly update?

MTD uses a points-based penalty system for late submissions. HMRC has said it will not issue penalty points for late quarterly updates during the 2026/27 tax year, but you still need to send them. Late final declarations and late payment of tax can still lead to penalties.

What about CIS deductions?

If you work as a CIS subcontractor, the deductions taken by your contractors still count as advance payments towards your tax and National Insurance. Keep every monthly payment and deduction statement and record the deductions in your software so they are taken into account at the end of the year.

Checklist: get your 7 November update done

Work through these before 7 November 2026:

• Check you are signed up for MTD for Income Tax on GOV.UK (HMRC will have written to you if you are in scope)
• Choose HMRC-recognised software. HMRC lists compatible products, and some are free
• Record every invoice and expense from 6 April to 5 October 2026
• Add van, fuel, tools, materials and any CIS deductions
• Submit your update by 7 November 2026
• Put 7 February 2027 in your diary for update 3

How AllSquare helps

MTD rewards trades who record as they go. AllSquare keeps every quote and invoice in one place, dated and totalled, so your income records are ready for your MTD software or your bookkeeper instead of sitting in a shoebox until January.

This article is general guidance, correct as of October 2026. It is not tax advice. Check GOV.UK or speak to an accountant about your own situation.