Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 have had to keep digital records and send HMRC quarterly updates under Making Tax Digital (MTD) for Income Tax. The second update of the year is due on 7 November 2026, and the Autumn Budget lands on 28 October. If you are self-employed and planning a purchase or remortgage, now is a good time to check your paperwork is in order.
Who MTD applies to, and when
HMRC's guidance (updated 16 October 2026) sets out a phased rollout based on qualifying income, meaning your total turnover from self-employment and property, before expenses:
- Over £50,000: from 6 April 2026, based on your 2024 to 2025 return.
- Over £30,000: from 6 April 2027, based on your 2025 to 2026 return.
- Over £20,000: from 6 April 2028, based on your 2026 to 2027 return.
For 2026 to 2027, quarterly updates are due on 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027, with the final declaration due by 31 January 2028.
What it means for your mortgage application
Quarterly updates are a running summary, not a finished tax return. In our experience, lenders still base self-employed affordability on finalised figures: tax calculations and tax year overviews, or accounts prepared by your accountant. Many look at two years, and some will consider one year in the right circumstances.
Where MTD can help is in keeping your records tidy and up to date. Clean, consistent numbers make it easier for your accountant to finalise accounts promptly, and easier for us to present your income clearly to an underwriter. Gaps, late filings or figures that don't match between documents are what tend to slow cases down.
Landlords are in scope too, because property income counts towards the threshold. If you have a buy-to-let portfolio and also run a business, your combined turnover is what matters. Please note that most buy-to-let mortgages are not regulated by the FCA.
With the Budget nine days away
Some self-employed clients are weighing up decisions around the Budget, such as how much to take as salary or dividends, or when to draw profits. These choices can change the income a lender sees for the next two or three years, so it is worth speaking to your accountant and your mortgage adviser together before acting.
Quick tips
- Check which MTD start date applies to you, based on your turnover from self-employment and property combined.
- Diary the 7 November quarterly deadline if you are already in MTD.
- Ask your accountant when your 2025 to 2026 figures will be finalised, and download your tax calculations and tax year overviews.
- Keep business and personal bank accounts separate; underwriters often ask for both.
- Talk to us before making profit or dividend changes if a mortgage is on the horizon.
Our CeMAP-qualified advisers work with sole traders, contractors, company directors and landlords every day. See how we help on our self-employed mortgages page, read our guide to how lenders assess self-employed income, or see how one client in Reading secured a mortgage on one year's accounts.
Sources
- GOV.UK: Use Making Tax Digital for Income Tax (updated 16 October 2026)
- HMRC: MTD for Income Tax timeline
- CIPP: Autumn Budget date announced for 28 October 2026
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.