Who needs Making Tax Digital for Income Tax
Making Tax Digital (MTD) for Income Tax means keeping digital records of your self-employment and property income and expenses, sending HMRC a quarterly update from compatible software, and filing your tax return from that software. Whether you must join depends on your qualifying income: your total self-employment and property income before expenses (gov.uk: Work out your qualifying income).
| Qualifying income in | More than | MTD from |
|---|---|---|
| 2024/25 tax return | £50,000 | 6 April 2026 |
| 2025/26 tax return | £30,000 | 6 April 2027 |
| 2026/27 tax return | £20,000 | 6 April 2028 |
HMRC looks at the Self Assessment return for each of those years (gov.uk: Check if you are eligible). Count your share of a jointly owned property. Employment income, your share of a partnership, dividends and pensions are left out. Once you are in, you can only leave when your qualifying income has been below the threshold for 3 tax years in a row.
Quarterly update deadlines
Each update is cumulative: it covers the tax year from 6 April to the end of the quarter. The deadlines are the 7th of the month after each quarter (gov.uk: Send quarterly updates).
| Standard period | Calendar period | Deadline |
|---|---|---|
| 6 April to 5 July | 1 April to 30 June | 7 August |
| 6 April to 5 October | 1 April to 30 September | 7 November |
| 6 April to 5 January | 1 April to 31 December | 7 February |
| 6 April to 5 April | 1 April to 31 March | 7 May |
Software uses standard periods unless you choose calendar periods before your first update, and you cannot switch for the rest of that year. The tax return is still due by 31 January after the tax year ends (gov.uk: Submit your tax return), and MTD does not change when you pay.
Worked example: £28,000 of sales and £6,000 of rent
A sole trader with a rented flat had £26,000 of sales and £6,000 of rent in 2024/25, which is £32,000 of qualifying income: not over £50,000, so MTD did not start in April 2026. In 2025/26 sales rose to £28,000, giving £34,000, which is over the £30,000 threshold.
The checker shows MTD applies from 6 April 2027. The first update, for 6 April 2027 to 5 July 2027, is due by 7 August 2027; the others by 7 November 2027, 7 February 2028 and 7 May 2028. The tax return for 2027/28 is due by 31 January 2029. Download the .ics file to add all five dates to your calendar.
Exemptions
Some people do not have to use MTD even with income over the threshold. Exemptions include having no National Insurance number, being digitally excluded (unable to use software because of age, health, religious beliefs or no internet access, which you apply for), and some reliefs and return pages that are exempt for now. The full list is on gov.uk: Find out if you can get an exemption. Qualifying income of £20,000 or less is exempt.
Frequently asked questions
What is the Making Tax Digital threshold?
It depends on the year HMRC looks at. Qualifying income over £50,000 in 2024/25 means MTD from 6 April 2026; over £30,000 in 2025/26 means MTD from 6 April 2027; over £20,000 in 2026/27 means MTD from 6 April 2028. The figures are "more than", so exactly £30,000 is not over the threshold.
Is qualifying income turnover or profit?
Turnover. It is your total income from self-employment and property before any expenses are taken off. A landlord with £25,000 of rent and £15,000 of costs has £25,000 of qualifying income, not £10,000.
Does my salary count towards Making Tax Digital?
No. PAYE employment income, your share of partnership profit, dividends and pensions are not qualifying income. Only self-employment and property income count, including your share of a jointly owned property.
When are the MTD quarterly updates due?
By 7 August, 7 November, 7 February and 7 May for the quarters ending 5 July, 5 October, 5 January and 5 April (or 30 June, 30 September, 31 December and 31 March with calendar periods). Each update covers the year to date. The tax return is due by 31 January after the tax year ends.
Does Making Tax Digital change when I pay tax?
No. Quarterly updates are reports, not payments. You still pay by 31 January and 31 July, including any payments on account, as under Self Assessment today.
Can I stop using Making Tax Digital if my income falls?
Yes, but only once your qualifying income has been below the threshold for 3 tax years in a row. You do not need to wait for the third year's tax return before opting out.