MTD for the trades: what actually changed in April 2026

The short version

• Since April 2026, sole traders and landlords earning over £50k keep digital records and send HMRC a summary every quarter, plus a final declaration. That's five filings a year instead of one.
• Over £30k joins April 2027. Over £20k, April 2028. If that's you, the clock's already running.
• Paper records and the January panic don't work under quarterly deadlines — the first one catches almost everyone out once.
• Penalties, straight: HMRC isn't issuing points for late quarterly updates in year one (2026/27) — the points system starts from year two. What isn't covered by that grace: the Self Assessment deadline, and the new late payment penalties, which run from 2026/27 and grow the longer the tax sits unpaid.

"But my banking app says it files MTD for free"

It does — honestly, it files. Here's what it doesn't do: check the categories are right, split labour from materials, handle CIS deductions, deal with reverse charge VAT, or notice you're heading over the VAT threshold until you've already crossed it.

For a straightforward sole trader with simple income, the app might genuinely be enough. For anyone with CIS coming off their invoices or VAT in the mix, it files whatever's in there — right or wrong. Garbage in, garbage filed, five times a year.