Who must use Making Tax Digital for Income Tax

Katerina Galkina · EN · 07/10/2026

Check the correct start year

Making Tax Digital for Income Tax is being introduced in stages for eligible sole traders and landlords. HMRC’s current guidance ↗ sets a start of 6 April 2026 for qualifying income over £50,000 in 2024/25; 6 April 2027 for income over £30,000 in 2025/26; and 6 April 2028 for income over £20,000 in 2026/27.

“Over” matters. Do not rely on your current bank balance or one month’s profit. Use HMRC’s checker for the relevant years and circumstances. Not receiving a letter does not remove your responsibility to check.

Calculate qualifying income correctly

HMRC defines qualifying income ↗ as self-employment and property income before expenses, subject to rules for particular sources. Multiple qualifying sources are combined. Ordinary PAYE employment income is not itself included in that figure.

Take the relevant return and list gross amounts by source. Do not deduct business expenses when testing the threshold. Joint property ownership, a short first accounting period, overseas sources or ceasing one business can require specific checks before reaching a conclusion.

Prepare the digital process

The MTD operating guidance ↗ covers compatible software, digital records, quarterly updates and the final return. A spreadsheet may form part of a solution, but establish how records will connect to compatible software. A bank export alone does not satisfy every obligation.

Before subscribing, check support for your income sources, HMRC submissions, accountant access, corrections, data export and pricing after a trial. Agree who maintains records, reconciles the bank and sends updates. Ensure you retain access to your data if you change software.

Distinguish updates from the tax return

Quarterly updates ↗ summarise digital records; they are not four final tax returns. Standard submission deadlines are 7 August, 7 November, 7 February and 7 May in the following tax year. Check your periods and dates in the software. An empty period does not necessarily allow you to omit an update.

Year-end adjustments and the final return remain necessary, and moving to MTD does not cancel the preceding year’s return. If digital compliance is genuinely inaccessible, check HMRC’s exemption criteria and application process. Do not assume an exemption without checking. If you have already missed your required start, contact HMRC or your agent and organise the necessary records promptly.