Do I need Making Tax Digital for Income Tax?
For most people, the key questions are whether you are a sole trader or landlord registered for Self Assessment and how much qualifying income you had in the relevant earlier tax year.
What is qualifying income?
HMRC describes qualifying income as total income from self-employment and property before expenses, based on the tax return used for the relevant test. If you have more than one self-employment or property source, the figures can need to be combined.
Which earlier tax return decides the start date?
| Tax return HMRC looks at | Qualifying income | MTD start date |
|---|---|---|
| 2024 to 2025 | More than £50,000 | 6th April 2026 |
| 2025 to 2026 | More than £30,000 | 6th April 2027 |
| 2026 to 2027 | More than £20,000 | 6th April 2028 |
Important exceptions
Some people can be exempt, including in circumstances involving digital exclusion. Partnership income as an individual partner is treated differently from qualifying sole trade or property income. Residence and other circumstances can also affect the rules.
What changes when MTD applies?
You need compatible software, digital records, quarterly updates and a tax return through software. The normal 31st January payment deadline remains. HMRC describes quarterly updates as summaries of income and expenses rather than separate tax returns.
HMRC information checked 22nd September 2026.