Making Tax Digital for Income Tax: are you in?
Making Tax Digital for Income Tax started on 6th April 2026 for sole traders and landlords with qualifying income over £50,000. It extends to those over £30,000 from April 2027 and over £20,000 from April 2028. You keep digital records, send quarterly updates through compatible software and file a final declaration after the year ends.
Who has to join, and when?
| Qualifying income | You join from | Based on income in |
|---|---|---|
| Over £50,000 | 6th April 2026 | 2024/25 tax return |
| Over £30,000 | 6th April 2027 | 2025/26 tax return |
| Over £20,000 | 6th April 2028 | 2026/27 tax return |
Qualifying income means your gross self-employment income plus gross property income, before expenses. Employment wages, pensions and dividends don't count towards the threshold.
What actually changes?
- You keep your business and property records digitally in software that works with MTD.
- You send a short summary to HMRC every quarter. For standard quarters the updates are due by 7th August, 7th November, 7th February and 7th May.
- After the tax year you submit a final declaration by 31st January, which replaces the old tax return.
- Late submissions build up penalty points rather than an automatic fine for each miss.
Can my accountant do it for me?
Yes. Many people let their accountant or bookkeeper handle the quarterly updates, using cloud software such as Xero, QuickBooks or FreeAgent. If you're near the threshold, get set up a quarter or two early so the first live quarter isn't your practice run.
Does it apply to limited companies?
No. MTD for Income Tax is for individuals with self-employment or property income. Limited companies are already in MTD for VAT if VAT registered, and Corporation Tax is not yet in scope.
Frequently asked questions
When did Making Tax Digital for Income Tax start?
6th April 2026, for sole traders and landlords with qualifying income over £50,000.
Is the MTD threshold based on profit or turnover?
Turnover. It's your gross self-employment and property income added together, before expenses.
Do I still need to file a tax return under MTD?
You file a final declaration after the tax year, by 31st January, which takes the place of the Self Assessment return for that income.
Does MTD for Income Tax apply to partnerships?
Not yet. HMRC has said partnerships will come in later, with no confirmed date.
This guide is general information for UK taxpayers and was correct when last reviewed. Tax rules change, so check your own position with a qualified adviser.
More guides
- How to pay yourself as a company director
- When does your business need a finance director?
- How to switch accountants
- Moving from Sage to Xero
- Dealer composites explained
- Interim finance director cover for car dealerships
- What are management accounts?
- Self Assessment deadlines for the 2025/26 tax return
- Do I need to file a Self Assessment tax return?
- How much does an accountant cost in the UK?
- Sole trader or limited company: which is better for you?
- How to raise finance for a small business
- How to choose the right accountant
- Do you need an accountant or a tax adviser?