Do I need Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax means keeping digital records and sending HMRC a short update every 3 months, using software. It started on 6 April 2026 for people with qualifying income over £50,000. The next group starts on 6 April 2027: sole traders and landlords whose qualifying income was over £30,000 in the 2025 to 2026 tax year.
The dates and limits
| If your qualifying income was over… | in the tax year… | you must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 (already started) |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Source: GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax. A tax year runs from 6 April to 5 April.
What counts as "qualifying income"
- Self-employment (sole trader) income plus property income, added together.
- It's the amount before expenses (your turnover or gross rents), not your profit. GOV.UK's example: £25,000 rent + £27,000 self-employment = £52,000 qualifying income.
- For a jointly owned property, count your share only.
- Not counted: wages (PAYE), your share of a partnership's profit, dividends, the State Pension and private pensions.
- HMRC checks the Self Assessment tax return you sent for the year before. If you only traded for part of a year, HMRC scales sole-trader income up to a full year; for property income you do this yourself.
Source: GOV.UK: Work out your qualifying income.
Check your dates
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What you'd have to do
- Use MTD-compatible software to keep digital records of income and expenses.
- Send a quarterly update for each business by 7 August, 7 November, 7 February and 7 May. These are running totals, not tax returns.
- Submit your tax return through the software by 31 January after the tax year, and pay any tax by then.
- For the 2026 to 2027 tax year HMRC won't charge penalties for late quarterly updates; after that, late updates can earn penalty points, and reaching the points limit means a £200 penalty.
- You still send a normal Self Assessment return for the year before you start.
Sources: GOV.UK: Send quarterly updates · GOV.UK: Penalties for MTD for Income Tax · GOV.UK: Exemptions
Facts on this page last checked against GOV.UK on 24 October 2026. Partnerships don't need MTD for Income Tax yet; HMRC will announce their timetable later.