The UK tax year runs from 6 April to 5 April the following year. Each tax year takes its name from the two calendar years it covers, for example, 2026/27. MTD for Income Tax reports on this period.
You report your sole trader and property income for each tax year separately. Your figures don't roll into the next year.
HMRC is rolling out MTD for Income Tax in three phases. The phase you fall into depends on your qualifying income. Qualifying income is your combined gross income from self-employment and property before expenses:
Once you join MTD for Income Tax, you stay in it. This is true even if your income drops below the threshold in later years.
MTD for Income Tax splits each tax year into four quarters. You send HMRC an update for each quarter through Sage Sole Trader. These updates show your running total of income and expenses for the tax year so far.
The quarter periods line up with the tax year:
Each quarterly update is due on the 7th of the second month after the quarter ends:
After the fourth quarter, you submit an end of year tax return. This confirms your full-year figures. It replaces the Self Assessment tax return for your sole trader and property income.
The end of year tax return is due by 31 January after the end of the tax year. This is the same date as the Self Assessment tax return deadline. You also pay any tax due by this date.
For the 2026/27 tax year:
For more information about MTD for Income Tax, go to makingtaxdigital.campaign.gov.uk/how-making-tax-digital-works.