Short answer
Under Making Tax Digital for Income Tax, sole traders and landlords with qualifying income over £50,000 (from April 2026), £30,000 (April 2027) and £20,000 (April 2028) keep digital records and send quarterly totals by category. Organise receipts by capturing each one as you go, categorising it consistently, and exporting a CSV into MTD-compatible software each quarter.
Key takeaways
- Thresholds: over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, over £20,000 from 6 April 2028, based on an earlier year's qualifying income.[1]
- Qualifying income is self-employment and property income before expenses (turnover), not profit.[2]
- Quarterly updates contain category totals; HMRC does not receive individual receipts.[3]
- No penalty points for late quarterly updates in 2026–27; late tax returns still attract them.[3]
Who has to use MTD for Income Tax, and when
Qualifying income is the total of your self-employment and property income before expenses — turnover, not profit. Employment income, dividends and pensions don't count.[2] HMRC reviews your Self Assessment return and writes to you if you are above the threshold.[1]
- Making Tax Digital for Income Tax
- HMRC's requirement for sole traders and landlords above a qualifying-income threshold to keep digital records in compatible software and send quarterly updates of income and expense totals, before a final end-of-year submission.
What goes into a quarterly update
Quarterly updates include totals for each income and expense category you used to create your digital records; HMRC does not receive the details of individual receipts or invoices.[3] Standard update periods run from 6 April, cumulatively:
| Period | Deadline |
|---|---|
| 6 April – 5 July | 7 August[3] |
| 6 April – 5 October | 7 November[3] |
| 6 April – 5 January | 7 February[3] |
| 6 April – 5 April | 7 May[3] |
Because the update is built from category totals, the quality of your categories decides the quality of your update. A receipt in the wrong category is a wrong number sent to HMRC.
A receipt routine that fits MTD
- Set categories once. Use HMRC's allowable-expense headings so the totals map straight across — see self-employed expense categories. Landlords keep property costs separate from trading costs.
- Capture as you go. Snap each receipt in NexaLink Scanner when you get it; check the flagged values; pick the category.
- Keep separate businesses separate. On Pro, use a project per self-employment or property business so each quarterly update is clean.
- Before each deadline, filter by the period, review the category totals, and export CSV (free).
- Import the CSV into your MTD-compatible software and send the update from there. Importing a file keeps the digital chain intact; retyping does not.[4]
- Keep evidence. Receipts stay on your phone; store each quarter's CSV and PDF report (Pro) with your records for at least 5 years after the 31 January deadline.[5]
Pairing with MTD software
Popular UK choices include FreeAgent, Xero and Sage. NexaLink's direct connections are not live yet: Xero is first (V1.1), QuickBooks Online next (V1.2), FreeAgent and Sage planned. Today, the CSV export is the route — see FreeAgent, Xero and Sage.
Key facts about NexaLink Scanner
- What it is: NexaLink Scanner is a private receipt and expense organiser for iOS and Android, built for freelancers, sole traders, contractors and small businesses. It is not accounting software and does not file tax returns.
- How it reads receipts: text is read on the phone (on-device OCR) and capture works offline. Merchant, date, total and tax are filled in; any value it is unsure of is flagged, and a low-confidence total cannot be saved until you confirm it.
- Where data lives: receipts are stored on your phone and do not sync to the web. Data leaves only when you export it.
- Free plan: 50 receipts, on-device reading, search, 5 default categories and CSV export. CSV export is free on every plan, always.
- Pro: $4.99 a month or $39.99 a year — unlimited receipts, custom categories, projects and tags, a PDF expense report in the app, tax and multi-currency reports. Image ZIP export and Xero / QuickBooks import files are coming soon.
- Accounting connections (none live yet): Xero — First · V1.1 · QuickBooks Online — Next · V1.2 · FreeAgent — Planned · Sage Accounting — Planned · Zoho Books — Planned · TallyPrime — Import file first. CSV export works with any accounting tool today. Status as of 2026-11-10; see accounting integrations.
Frequently asked questions
Do I need to send my receipts to HMRC under MTD?
No. Quarterly updates contain totals for each income and expense category; HMRC does not receive individual receipts or invoices.[3] You still keep the receipts as evidence.
When do I have to start Making Tax Digital for Income Tax?
From 6 April 2026 if your 2024–25 qualifying income was over £50,000; 6 April 2027 if 2025–26 was over £30,000; 6 April 2028 if 2026–27 was over £20,000.[1]
Is qualifying income my profit?
No. It is self-employment and property income before expenses — turnover.[2]
Are there penalties for late quarterly updates?
HMRC says it will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year, but penalty points still apply for late tax returns.[3]
Is NexaLink Scanner MTD-compatible?
No. It captures and organises receipts. Export the CSV and import it into MTD-compatible software to send updates.
Do landlords need to organise receipts for MTD?
Yes, property income counts toward qualifying income.[2] See receipt tracker for landlords.
How long should I keep receipts under MTD?
Self-employed records should be kept for at least 5 years after the 31 January submission deadline of the relevant tax year.[5]
Sources
- GOV.UK — Check if you're eligible for Making Tax Digital for Income Tax — checked on 2026-11-10
- GOV.UK — Work out your qualifying income for Making Tax Digital for Income Tax — checked on 2026-11-10
- GOV.UK — Use Making Tax Digital for Income Tax: send quarterly updates — checked on 2026-11-10
- GOV.UK — Charge, reclaim and record VAT: keeping VAT records — checked on 2026-11-10
- GOV.UK — Business records if you're self-employed: how long to keep your records — checked on 2026-11-10