MTD News October 2026: Sign-up Update, £30,000 Threshold and November Deadline
Information checked on 15 October 2026. This update covers the latest HMRC announcements on Making Tax Digital for Income Tax (MTD), including digital records for sole traders and landlords.
Three developments deserve attention this October: HMRC updated its sign-up guidance on 13 October, urged people with qualifying income over £30,000 to prepare for the next phase, and reminded existing users about the 7 November quarterly update deadline. Here is what to check.
13 October: updated identity verification guidance
HMRC has removed the option to prove your identity by answering questions from its MTD sign-up guidance. Use the same user ID and password that you use for Self Assessment. After signing in, you may be asked to provide further proof of identity.
Where that check is required, the current guidance directs you to use an app on your mobile phone and details from a current passport or driving licence. Follow the on-screen steps and contact HMRC if you have difficulties. This is an update to the registration process; it does not itself change income thresholds or tax rates.
Over £30,000: prepare for 6 April 2027
On 5 October, HMRC urged sole traders and landlords to prepare for the next stage of MTD. If your combined qualifying self-employment and property income for the 2025–2026 tax year exceeded £30,000, you will generally need to use MTD from 6 April 2027, unless an exemption applies.
The threshold concerns income before expenses, not profit. If you have more than one sole-trader business, or receive both business and rental income, consider the combined qualifying income. Each source being below the threshold does not necessarily mean you are outside MTD.
Over £50,000 based on the 2024–2025 tax return: MTD applies from 6 April 2026.
Over £30,000 based on the 2025–2026 tax return: from 6 April 2027.
Over £20,000 based on the 2026–2027 tax return: from 6 April 2028.
Already using MTD? Your next deadline is 7 November
The second quarterly update for the 2026–2027 tax year is due by 7 November 2026. With standard update periods, it covers cumulative information from 6 April to 5 October. If you have elected to use calendar update periods, the corresponding period ends on 30 September; the submission deadline is the same.
Quarterly updates are cumulative: they contain information from the start of the tax year. They are not four separate annual tax returns, and quarterly reporting does not itself mean four tax payments. Annual return and payment obligations remain.
HMRC will not issue penalty points for late quarterly updates in the 2026–2027 tax year, but the updates must still be submitted. This first-year treatment does not remove potential penalties for a late annual tax return or late tax payment.
What if HMRC has signed you up?
HMRC says it began registering some people who were required to use MTD but had not signed up from September 2026, in stages. If you receive a notification, check the income sources in your account, add any missing sources and report any that have ceased. You will also need compatible software, digital records from the start of the tax year and any outstanding updates.
Five practical steps to take now
Check your combined qualifying business and property income before expenses on the relevant year's tax return.
Confirm your MTD start date and whether an exemption applies to your circumstances.
Choose MTD-compatible software and bring income and expense records up to date.
If you already use MTD, prepare for 7 November and check whether any earlier updates are outstanding.
Agree with your accountant who maintains the records, submits updates and completes the annual tax return.
ZipTax can help you understand which MTD phase applies to you and prepare your bookkeeping for digital reporting.
Official sources
Prepared using HMRC information available on 15 October 2026. This article provides general information; your obligations depend on your income and individual circumstances.
