Key takeaways
- MTD for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000 in 2024 to 2025.
- It extends to income over £30,000 from April 2027 and over £20,000 from April 2028.
- Qualifying income is self-employment plus property income before expenses; salary, pensions and dividends do not count.
- Quarterly updates are due by 7 August, 7 November, 7 February and 7 May; the tax return is still due by 31 January.
Who has to use it
Making Tax Digital (MTD) for Income Tax is for people who file a Self Assessment return and earn money from self-employment, property or both. HMRC looks at your qualifying income: the total of those two, before expenses, on a past tax return.
| Qualifying income in | More than | You must use MTD from |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
Worked examples
- A plumber with £24,000 of turnover and £9,000 of rent from a flat in 2025 to 2026 has qualifying income of £33,000, over £30,000. MTD starts on 6 April 2027 and the first quarterly update is due by 7 August 2027.
- An employee who lets a flat earns a £60,000 salary and £18,000 of rent. Only the rent counts, so qualifying income is £18,000: under every threshold so far. If the rent passes £20,000 in 2026 to 2027, MTD starts in April 2028.
- Joint owners each count only their own share of the rent.
Enter your own figures in the Making Tax Digital checker to see your start date and deadlines.
What you have to do
- Keep your business and property records in MTD-compatible software. Spreadsheets are allowed with bridging software.
- Send a summary of income and expenses to HMRC every quarter.
- Submit your tax return through the software by 31 January after the tax year ends.
| Quarter | Update due |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
Updates are cumulative, so each one covers the year so far. HMRC has said it will not charge penalty points for late quarterly updates during the 2026 to 2027 tax year, the first year of MTD.
Exemptions
You can apply for an exemption if you are digitally excluded, for example because of age, disability, location or religious beliefs. Partnerships are not included yet. HMRC decides each case, so check its guidance or ask an accountant if you are unsure.
Sources
Fact-checked against the sources above. We test every tool we mention. Editorial policy.
