Making Tax Digital for Income Tax: When It Hits You
Quick answer
Making Tax Digital for Income Tax replaces one annual Self Assessment return with four quarterly updates plus a final declaration, filed through HMRC-recognised software. It starts on 6 April 2026 for sole traders and landlords with qualifying income over GBP 50,000, then GBP 30,000 from April 2027 and GBP 20,000 from April 2028.
Making Tax Digital for Income Tax: who is affected and when
| Qualifying income threshold | You must start using MTD from | Income year HMRC checks |
|---|---|---|
| More than GBP 50,000 | 6 April 2026 | Your 2024/25 tax return |
| More than GBP 30,000 | 6 April 2027 | Your 2025/26 tax return |
| More than GBP 20,000 | 6 April 2028 | Your 2026/27 tax return |
| GBP 20,000 or less | Not yet mandated | No date announced as of June 2026 |
Step by step
- 1
Work out your qualifying income
Add your gross income from self-employment to your gross income from property, before any expenses. This combined turnover figure, not your profit, is what HMRC checks against the threshold.
- 2
Find your start date
Over GBP 50,000 and you start from 6 April 2026 (HMRC looks at your 2024/25 return). Over GBP 30,000, April 2027. Over GBP 20,000, April 2028. At GBP 20,000 or less, no date is set as of June 2026.
- 3
Check whether you can get an exemption
If you are digitally excluded, you can apply to be exempt and may not have to sign up at all. Check the gov.uk exemption guidance before buying any software.
- 4
Choose MTD-compatible software
Pick recognised software from the gov.uk software finder. Free products exist for simple tax affairs, and bridging software lets you keep using spreadsheets, so you do not have to pay for a full accounting package.
- 5
Sign up and keep digital records
Sign up through gov.uk (or let your accountant do it), then record income and expenses digitally as you go rather than once a year.
- 6
Send four quarterly updates, then a final declaration
Submit a quarterly update for each of the four periods in the tax year, then a final declaration after year end. The final declaration replaces your old annual Self Assessment return.
Making Tax Digital (MTD) for Income Tax is the biggest change to how the self-employed and landlords file tax in a generation. The one free Self Assessment return you fill in each January is being replaced by four quarterly updates plus a final declaration, all filed through HMRC-recognised software. The table above is the whole timetable: find your qualifying income, read across to your start date.
The detail that trips people up is "qualifying income". It is not your profit. It is your total gross income from self-employment and property combined, measured before you take off a single expense. A landlord billing GBP 30,000 in rent and earning GBP 25,000 from a side trade is over the GBP 50,000 line on turnover even if the actual profit is modest. That matters, because this is a compliance cost being shifted onto small operators: people who filed for free once a year may now need software and four filings a year. The good news is you do not have to buy an expensive package. gov.uk lists free products for simple tax affairs, and bridging software lets you keep your existing spreadsheet and just connect it to HMRC.
For the wider picture of what you owe and when, start with our pillar on self-employed tax, and if MTD has you worried about cash flow, read how payments on account work so the timing does not catch you out. When you are ready to pick a tool, our accounting software comparison covers the MTD-compatible options, including the cheaper and free routes.
Figures and dates are taken from gov.uk and are current as of June 2026. MTD timelines have changed before, so confirm your start date against gov.uk. This is general information, not financial or tax advice.
Frequently asked questions
What does Making Tax Digital for Income Tax mean?
It means keeping digital records and filing your tax through HMRC-recognised software instead of the free online Self Assessment form. Once you are in scope you send four quarterly updates of your income and expenses during the year, then a final declaration after the tax year ends. The final declaration replaces the single annual Self Assessment return.
What is qualifying income for Making Tax Digital?
Qualifying income is your total gross income from self-employment and property combined, measured before you deduct any expenses (your turnover). HMRC adds the two together. Wages from a PAYE job, dividends, pensions, and partnership profit shares do not count towards it. If that combined gross figure is over the threshold for the year, you are in scope.
Do all self-employed have to go digital?
No. Only sole traders and landlords whose qualifying income is over the relevant threshold are mandated, and only from their start date: over GBP 50,000 from April 2026, over GBP 30,000 from April 2027, and over GBP 20,000 from April 2028. If your gross self-employment and property income is GBP 20,000 or less, no start date has been set as of June 2026.
Who is exempt from Making Tax Digital?
You can apply for an exemption if you are digitally excluded, for example because of age, disability, location with no reliable internet, or religious beliefs. A digital-exclusion exemption can be permanent. Some people are outside MTD entirely, and HMRC decides individual applications. Check your position against the gov.uk exemption guidance before assuming you must sign up.
Can my accountant do Making Tax Digital for me?
Yes. An accountant or tax agent can keep your digital records, send the quarterly updates, and file your final declaration on your behalf, the same as they can for Self Assessment now. You still need MTD-compatible software in the chain, but the work can sit with your agent rather than you.
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.