Do I need Making Tax Digital for Income Tax?
MTD for Income Tax started on 6 April 2026 for sole traders and landlords over £50,000. Enter your turnover and we’ll tell you if and when it applies to you — and what you’ll need to do.
What happens and when
Based on the first tax year your qualifying income goes over the threshold.
The step-by-step working will appear here.
Making Tax Digital for Income Tax in plain English
Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report to HMRC. Instead of one tax return a year, you keep digital records in compatible software, send a short summary of income and costs every quarter, and then submit your tax return through the same software by 31 January.
| If your qualifying income in… | is more than… | you must use MTD from |
|---|---|---|
| 2024/25 | £50,000 | 6 April 2026 |
| 2025/26 | £30,000 | 6 April 2027 |
| 2026/27 | £20,000 | 6 April 2028 |
Qualifying income is your total turnover (before expenses) from self-employment plus your share of property income. A plumber with £35,000 of sales and £15,000 of costs has qualifying income of £35,000, not £20,000. Wages, pensions, dividends and partnership income don’t count.
If you’re in CIS, the turnover you report is your gross pay before CIS was taken off, so check your statements. Our Making Tax Digital guide covers software, exemptions and penalties.
Things people forget
Frequently asked questions
Who needs to use Making Tax Digital for Income Tax?
Sole traders and landlords whose qualifying income is over £50,000 in 2024/25 must use it from 6 April 2026. The threshold drops to over £30,000 (based on 2025/26) from April 2027, and over £20,000 (based on 2026/27) from April 2028.
What counts as qualifying income for MTD?
Your total self-employment turnover plus your share of property income, before any expenses. Employment income, pensions, dividends, savings interest and partnership profits are left out.
When are MTD quarterly updates due?
For standard quarters ending 5 July, 5 October, 5 January and 5 April, updates are due by 7 August, 7 November, 7 February and 7 May. You then submit your tax return through your software by 31 January after the tax year.
Is there a penalty for late MTD quarterly updates?
HMRC has said it will not give penalty points for late quarterly updates during the 2026/27 tax year. After that a points system applies: a £200 penalty once you reach 4 points. Late payment penalties also apply.
Do I still need to file a Self Assessment tax return?
Yes, but under MTD you submit it through your compatible software instead of HMRC’s online service. You must file your last return the old way for the year before you start.
Can I get an exemption from Making Tax Digital?
If your qualifying income is £20,000 or less you are automatically exempt. You can apply for an exemption if it is not reasonable for you to use digital tools, for example because of age, disability, location or religious reasons.
Sources and review
Last reviewed: 21 October 2026. The rates and rules on this page were checked against GOV.UK guidance on that date by the HandySums team. We re-check every April, after each Budget and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.