Who needs Making Tax Digital for Income Tax?
By The Money Sheets · Last checked 22 October 2026
Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report to HMRC: digital records, four quarterly updates a year and a tax return sent from compatible software. Whether and when it applies to you depends on your qualifying income.
The three start dates
| If your qualifying income was over… | in the tax year… | you must use MTD from… |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
You need to use it if you're a sole trader or landlord registered for Self Assessment, you get income from self-employment, property or both, and your qualifying income is over the threshold for the relevant year.
What counts as qualifying income
Qualifying income is your total gross income (before expenses and tax) from self-employment and property in a tax year. If you have a £35,000 turnover from your business and £8,000 rent, your qualifying income is £43,000, even if your profit is much lower.
These do not count, according to HMRC:
- employment income (PAYE)
- your share of profit from a partnership as an individual partner
- dividends, including from your own company
- the State Pension and private pensions
Partnerships will join later; HMRC says it will set out that timeline at a later date.
How you'll find out
HMRC reviews your Self Assessment return each year. If your qualifying income is over the threshold, it writes to confirm you need to start from the next 6 April. HMRC also says that if you don't get a letter, it's still your responsibility to check and sign up. Its online checker asks about 2024/25, 2025/26 and 2026/27 and can tell you if you might be exempt. Some exemptions are automatic; others (for example being digitally excluded) must be applied for.
What you'll need
- Digital records of your self-employment and property income and expenses.
- Compatible software to send quarterly updates and your tax return. If you keep records in a spreadsheet, you need HMRC-recognised bridging software that is digitally linked to it (no copy-paste or retyping). Find compatible software on GOV.UK.
- To keep sending a normal Self Assessment return for the year before you start.
For the 2026/27 dates, see MTD quarterly deadlines 2026/27.
Getting ready if you join in 2027 or 2028
Starting your records in the same SA categories now makes the switch simple. Our Sole Trader workbook includes an MTD threshold check on its dashboard, and the Landlord tracker adds up rent across properties so you can see your qualifying income at a glance. Neither is HMRC-recognised software; they prepare your figures.
Last checked against GOV.UK on 22 October 2026. The Autumn Budget on 28 October 2026 may change some rules for later tax years; we re-check this page after each Budget and every April.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax (checked 22 October 2026)
- GOV.UK: Use Making Tax Digital for Income Tax (introduction) (checked 22 October 2026)
- GOV.UK: Reduction of the mandation threshold to £20,000 from April 2028 (checked 22 October 2026)
This guide is general information, not tax, legal or financial advice.
Sole Trader Bookkeeping Workbook
Keep your income and expenses in one tidy workbook, see your year-to-date quarterly totals by SA category, and know roughly how much to put aside for tax. For Making Tax Digital you also need HMRC-recognised bridging software, digitally linked to the workbook.
See the Sole Trader Bookkeeping Workbook