Do I need Making Tax Digital?
Find out in under a minute if MTD for Income Tax applies to you, when you start, and every deadline you'll need to hit.
Check your own dates
The short answer
- Self-employment and rental income over £50,000 in 2024/25 → MTD now (from April 2026)
- Over £30,000 in 2025/26 → from 6 April 2027
- Over £20,000 in 2026/27 → from 6 April 2028
Income means turnover before expenses. Wages, pensions and dividends don't count.
General information based on HMRC's published rules, not tax advice. Rules checked against GOV.UK on 11 October 2026. Some people are exempt or have unusual circumstances, so check your own position with HMRC or an accountant.
How Making Tax Digital works
Making Tax Digital (MTD) for Income Tax replaces the once-a-year Self Assessment routine for sole traders and landlords over the income threshold. Once you're in, you:
- keep digital records of your income and expenses in HMRC-compatible software
- send HMRC a short quarterly update every three months (a summary, not a tax calculation)
- submit your tax return straight from that software by 31 January after the tax year ends
You still pay tax on the same dates as before. What changes is how often you report and the software you use.
The MTD thresholds and start dates
| Qualifying income over | In tax year | You need 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 |
HMRC looks at your Self Assessment return for each year and writes to you if you're over the line. If you don't get a letter, it's still your responsibility to check and sign up.
What counts as qualifying income
Counts: your gross self-employment income and your gross property income (UK and, if you're UK resident, foreign), added together. It's turnover, before expenses.
Doesn't count: PAYE wages, State or private pensions, dividends (including from your own company), and your share of profits as a partner in a partnership.
Example: £25,000 rent plus £27,000 from self-employment gives qualifying income of £52,000, even if your profit after expenses is much lower.
Quarterly deadlines
| Quarter | Period covered | Update due |
|---|---|---|
| 1 | 6 April to 5 July | 7 August |
| 2 | 6 July to 5 October | 7 November |
| 3 | 6 October to 5 January | 7 February |
| 4 | 6 January to 5 April | 7 May |
| Tax return | The whole tax year | 31 January after the year ends |
If your accounting year runs 1 April to 31 March, you can choose calendar quarters instead (ending 30 June, 30 September, 31 December and 31 March). The due dates stay the same.
Frequently asked questions
Does my salary count towards the MTD threshold?
No. Only gross self-employment and property income counts. Someone earning £45,000 in a job plus £18,000 from rent has qualifying income of £18,000, not £63,000.
Is it turnover or profit?
Turnover. A landlord collecting £32,000 a year in rent with £15,000 of costs still has qualifying income of £32,000, so they'd need MTD from April 2027.
I own a rental property jointly. What counts?
Only your share. A property bringing in £50,000 owned 50/50 with a sibling gives each of you £25,000 of qualifying income. If you only ever see your share after expenses, HMRC uses that figure.
I've only been trading for part of the year. How does that work?
For sole traders, HMRC scales part-year income up to a full year. Six months of trading at £18,000 would count as £36,000. If you have property income for part of a year, you need to scale it up yourself.
I'm in a partnership. Do I need MTD?
Not for your partnership share. Partnerships will be brought in later, on a date HMRC hasn't set yet. But if you also have your own self-employment or rental income, that can still put you over the threshold.
Can I be exempt?
Yes, in some cases. For example, if you're digitally excluded (you can't reasonably use a computer or the internet because of age, disability, location or another reason). If you're exempt you carry on with a normal Self Assessment return. See HMRC's exemptions guidance.
What happens if I miss a quarterly deadline?
Missed deadlines can earn penalty points, and enough points trigger a fine. HMRC has said it won't apply penalty points for late quarterly updates in the first year (2026 to 2027), but late tax returns still count. Don't rely on the grace period lasting.
Can I leave MTD if my income drops?
Once you're in, you can choose to opt out if your qualifying income stays below the threshold for three tax years in a row.
Get a reminder before each deadline
One email a week before every quarterly update and tax return deadline. Nothing else, and you can unsubscribe in one click.
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