Sole traders and landlords with qualifying income over £50,000 had to start Making Tax Digital for Income Tax from 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. You'll keep digital records and send HMRC quarterly updates from compatible software.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report their income to HMRC. Instead of one annual tax return based on paper or spreadsheet records, you keep digital records in HMRC-compatible software, send a summary every quarter and submit your final return from the same software.
Who needs to use it and when?
It applies to individuals registered for Self Assessment who have income from self-employment, UK or overseas property, or both. Whether you're in depends on your qualifying income — your combined gross income (turnover before expenses) from those sources.
| Qualifying income | Based on tax year | You must start |
|---|---|---|
| Over £50,000 | 2024/25 | 6 April 2026 |
| Over £30,000 | 2025/26 | 6 April 2027 |
| Over £20,000 | 2026/27 | 6 April 2028 |
Income from employment, dividends and savings doesn't count towards qualifying income, though it still goes on your tax return. Some people are exempt — for example if it isn't reasonably practical for them to use digital tools.
What you need to do
- Check your qualifying income for the relevant tax year.
- Choose compatible software — or let your accountant choose and set it up.
- Sign up for MTD for Income Tax on GOV.UK (your agent can do this for you).
- Keep digital records of income and expenses as you go.
- Send quarterly updates by 7 August, 7 November, 7 February and 7 May.
- Submit your final tax return by 31 January following the tax year.
Does it change when I pay tax?
No. Quarterly updates are summaries of your income and expenses — they don't trigger a payment. Your tax is still due on 31 January and 31 July as now.
How we can help
We'll confirm whether and when MTD applies to you, set up suitable software, sign you up with HMRC and handle your quarterly updates and final return as part of our Self Assessment service. Landlords can find more on our landlord accounting page.
Frequently asked questions
When does Making Tax Digital for Income Tax start?
From 6 April 2026 for qualifying income over £50,000, 6 April 2027 for over £30,000 and 6 April 2028 for over £20,000.
Does Making Tax Digital apply to landlords?
Yes. Rental income counts towards qualifying income, together with any self-employment income.
Can my accountant send my quarterly updates?
Yes. An authorised agent can sign you up and submit quarterly updates and your final return on your behalf.
Official guidance: GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
Reviewed November 2026. This guide is general information based on rules at the date shown and is not advice for your specific circumstances. Tax rules change — contact us before acting.