Making Tax Digital for Income Tax: who needs it and when
Short answer: Making Tax Digital for Income Tax applies from 6 April 2026 if your qualifying income (self-employment plus property income before expenses) was over £50,000 in 2024/25, from 6 April 2027 if over £30,000 in 2025/26, and from 6 April 2028 if over £20,000 in 2026/27.
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General information, not tax or financial advice. Check GOV.UK or speak to a qualified adviser about your own situation.
Making Tax Digital (MTD) for Income Tax means keeping digital records and sending HMRC a quarterly update from compatible software. It applies to sole traders and landlords registered for Self Assessment.
When does MTD for Income Tax start, and at what income?
| Qualifying income over | Measured in tax year | Must use MTD from |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
Qualifying income is turnover, not profit: your total self-employment and property income before expenses. Example: £32,000 freelance turnover plus £8,000 rent is £40,000 qualifying income, so you would be in scope from April 2027 if that was your 2025/26 position.
What do you need to do?
- Keep digital records of income and expenses.
- Send a quarterly update for each business (see deadlines).
- Submit your tax return by 31 January after the tax year.
- Use compatible software; spreadsheets plus bridging software are allowed.
To sign up you must be registered for Self Assessment and have submitted a return in the last 2 years. HMRC will not give penalty points for late quarterly updates during 2026/27.
Frequently asked questions
Who needs Making Tax Digital for Income Tax?
Sole traders and landlords registered for Self Assessment whose qualifying income (self-employment plus property income before expenses) is over the threshold for the relevant tax year.
When do I have to start MTD for Income Tax?
From 6 April 2026 if your qualifying income was over £50,000 in 2024/25; from 6 April 2027 if over £30,000 in 2025/26; and from 6 April 2028 if over £20,000 in 2026/27.
Is qualifying income my profit or turnover?
Turnover. GOV.UK defines qualifying income as total self-employment and property income before expenses, based on the tax return for the earlier tax year.
Does MTD apply to partnerships?
Not yet. GOV.UK says partnerships will need to use it in future and HMRC will set out the timeline later.
Do I still file a tax return?
Yes. You still submit a Self Assessment tax return for the year before you start, and the quarterly updates are summaries, not tax returns.
Can I be exempt?
Possibly, for example if you are digitally excluded. Exempt people still file a normal Self Assessment return. Check the GOV.UK exemptions guidance.