Making Tax Digital for Income Tax
Making Tax Digital for Income Tax for sole traders and landlords: who it applies to, the 2026, 2027 and 2028 thresholds, and what to do next.
Making Tax Digital for Income Tax changes how sole traders and landlords keep records and report to HMRC: digital records, and a quarterly update from compatible software. It starts in stages, by income, from 6 April 2026. Making Tax Digital for Income Tax only. Separate rules apply to VAT.
Who it applies to
It applies to sole traders and landlords, based on their qualifying income: self-employment and property income before expenses, from their tax return. For property you own jointly, only your own share counts. Employment income, a partner’s share of partnership profit, dividends and pensions do not count towards the threshold.
Partnerships will need to use it in future, and companies use different rules. Some people are exempt, either automatically or by applying.
When you would start
| Qualifying income in | More than | Start 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 |
Exactly the threshold does not count: it has to be more. The earliest year that is over decides your start date. The 2028 date depends on 2026 to 2027, a year that has not ended yet, so for now it can only be a forecast. Not getting a letter from HMRC does not mean you are not affected: it is still your responsibility to check.
What to do next
- Check whether you need to start, and when. Use the Making Tax Digital checker, or HMRC’s guidance and checker.
- See when quarterly updates are due. Each update covers the tax year so far, and they are due on 7 August, 7 November, 7 February and 7 May: see the deadlines for each year, with a calendar file to download. HMRC explains the periods in its guide to quarterly updates. You still send a tax return by 31 January after the tax year.
- Find software that works with Making Tax Digital. HMRC lists it in its software finder; HMRC does not recommend any product.
Sources
- HMRC — Find out if and when you need to use Making Tax Digital for Income Tax
- HMRC — Work out your qualifying income for Making Tax Digital for Income Tax
- HMRC — Find out if you can get an exemption from Making Tax Digital for Income Tax
- HMRC — Send quarterly updates for Making Tax Digital for Income Tax
- HMRC — Making Tax Digital for Income Tax: if your circumstances change
- HMRC — Choose the right software for Making Tax Digital for Income Tax
Rules checked: 4 October 2026. This page is guidance, not tax advice.
Find out whether you need to start, and from when.
Check if Making Tax Digital applies →