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Who has to use Making Tax Digital for Income Tax? MTD for Income Tax applies to sole traders and landlords, based on the combined gross income (turnover before expenses) from self-employment and property. It starts from 6 April 2026 if that income is over £50,000, from 6 April 2027 if over £30,000, and from 6 April 2028 if over £20,000. Employees, and anyone whose only income is wages, savings, dividends or a pension, are not affected. Once in, you must keep digital records and send HMRC quarterly updates using compatible software.
When does Making Tax Digital start?
Your gross self-employment + property income
MTD starts
Over £50,000
6 April 2026
Over £30,000
6 April 2027
Over £20,000
6 April 2028
£20,000 or under
Not yet required
"Qualifying income" is your total gross turnover and rental income before expenses, added together — not your profit. Your figure from the tax return two years earlier sets your start date (e.g. your 2024/25 return decides whether you join in April 2026).
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Making Tax Digital FAQs
What actually is Making Tax Digital?
It's HMRC's shift to digital tax. If it applies to you, you keep your business or property records digitally and send HMRC a summary every quarter using approved software, then a final declaration after the year end — instead of one annual Self Assessment return.
Does the £50,000 threshold count my salary too?
No. Only your gross self-employment and property income count towards the threshold. Salary, pension, savings interest and dividends are excluded — though you still declare them as normal.
I earn under £20,000 — do I need to do anything?
Not yet. MTD for Income Tax isn't mandatory below £20,000, though the government may extend it in future. Carry on with the usual Self Assessment for now.
Do partnerships and limited companies have to use it?
Not under this rollout. MTD for Income Tax is for individual sole traders and landlords. Partnerships and companies have separate rules and timelines.