Does Making Tax Digital for Income Tax apply to me?
Making Tax Digital for Income Tax applies to sole traders and landlords whose qualifying income, meaning self-employment turnover plus property income before expenses, is over £50,000 in 2024/25 (start 6 April 2026), over £30,000 in 2025/26 (start 6 April 2027) or over £20,000 in 2026/27 (start 6 April 2028). Partnership profits, wages, pensions and dividends don't count.
Check if and when you need to join
Tick your types of income, then enter the gross figures from each tax return. We only ask for a later year if the earlier one doesn't settle it. Nothing you enter is stored or sent anywhere.
Your result
Tick your income, add your figures and press "Check my position".
You'll see whether you need to join, from which date, your first-year deadlines and what to do next.
Want help getting ready?
George can check your figures, help you choose software and set up your digital records. Or read our free white paper first.
When does Making Tax Digital for Income Tax start?
It depends on your qualifying income on the tax return from two years before the start date. GOV.UK sets out three waves:
| Qualifying income | Tax year tested | Must use MTD from | First quarterly update due |
|---|---|---|---|
| Over £50,000 | 2024/25 | 6 April 2026 | 7 August 2026 |
| Over £30,000 | 2025/26 | 6 April 2027 | 7 August 2027 |
| Over £20,000 | 2026/27 | 6 April 2028 | 7 August 2028 |
HMRC writes to people above the threshold, but GOV.UK is clear that it's still your responsibility to check. If you were over £50,000 in 2024/25 and haven't signed up, HMRC has been signing people up in stages since September 2026.
What counts as qualifying income?
Qualifying income is your self-employment turnover plus your property income, before any expenses are taken off (GOV.UK: work out your qualifying income). It's gross income, not profit, so a modest trade and one rental can push you over together.
- Counts: turnover from every sole trade, UK rents (including your share of jointly owned property) and, if you're UK resident, foreign rents.
- Doesn't count: your share of partnership profits, employment pay, pensions, and dividends, including dividends from your own company.
The rules are the same across the UK, including Scotland. They apply to individuals: a limited company pays Corporation Tax, not Income Tax, so its profits sit outside Making Tax Digital for Income Tax. Partnerships don't have to join yet, and no start date has been set.
What are the quarterly update deadlines?
You send four cumulative quarterly updates, then your tax return by 31 January after the tax year ends (GOV.UK: send quarterly updates). The 2026/27 dates are:
| Submission | Period covered | Due by |
|---|---|---|
| Quarterly update 1 | 6 April to 5 July 2026 | 7 August 2026 |
| Quarterly update 2 | 6 April to 5 October 2026 | 7 November 2026 |
| Quarterly update 3 | 6 April 2026 to 5 January 2027 | 7 February 2027 |
| Quarterly update 4 | 6 April 2026 to 5 April 2027 | 7 May 2027 |
| Tax return (final declaration) | The whole of 2026/27 | 31 January 2028 |
You can choose calendar quarters starting 1 April instead, with the same due dates, but you must pick them in your software before your first update of the year. GOV.UK confirms Making Tax Digital doesn't change when you pay. See all the dates on our 2026/27 tax deadlines page.
The 2026/27 soft landing for late updates
No penalty points, in the first year only. HMRC won't give points for late quarterly updates in 2026/27, but you still have to keep digital records and send every update before you can file your return. A late 2026/27 tax return (due 31 January 2028) still earns a point, and late payment can still be penalised (GOV.UK: penalties). From 2027/28, late quarterly updates earn points too: one point per missed deadline, a £200 penalty once you reach 4 points, and another £200 for each further missed deadline. Our Making Tax Digital guide explains the penalties in full.
Can I get an exemption?
Some people are exempt automatically, including anyone with qualifying income of £20,000 or less, people with no National Insurance number before the tax year starts, trusts and personal representatives. If age, health, disability, religious beliefs or lack of internet access make using software unreasonable, you must apply to HMRC by phone or in writing. HMRC aims to reply within 28 calendar days. Being unfamiliar with software, having always filed on paper, or the extra time or cost aren't accepted as reasons on their own.
What should I do now?
- Choose compatible software. Spreadsheets are allowed if they're digitally linked to bridging software.
- Keep digital records of each income and expense (amount, date and category) and keep them for at least 5 years after the 31 January deadline.
- Get the set-up right once. Our personal tax service covers Making Tax Digital, our bookkeeping service can keep your records up to date, and our Making Tax Digital guide explains each step.
Free white paper
Making Tax Digital for sole traders and landlords 2026/27
What changes, when it reaches you, and the reliefs sole traders and landlords most often miss. Free to download.
Frequently asked questions
Is Making Tax Digital based on turnover or profit?
Turnover. Qualifying income is your self-employment income and property income before any expenses are taken off. A sole trader with £55,000 of sales and £20,000 of costs has qualifying income of £55,000, not £35,000.
Does partnership income count towards Making Tax Digital?
No. Your share of partnership profits does not count towards qualifying income. Partnerships themselves do not have to use Making Tax Digital for Income Tax yet. GOV.UK says they will in future, but no start date has been set.
I'm a limited company director. Does Making Tax Digital for Income Tax apply to me?
Not because of your company. Salary and dividends from your own company do not count towards qualifying income, and the company pays Corporation Tax rather than Income Tax. You only need to join if you also have self-employment or property income over the threshold.
Do I need to sign up if HMRC hasn't written to me?
Yes, if your qualifying income is over the threshold. HMRC writes to people whose income is above it, but GOV.UK says it is still your responsibility to check. Since September 2026 HMRC has also been signing up, in stages, people who were over £50,000 in 2024/25 and had not joined.
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
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