Who has to use Making Tax Digital for Income Tax
MTD for Income Tax (sometimes called MTD ITSA) replaces paper-style record keeping for sole traders and landlords with digital records in HMRC-recognised software. HMRC decides who is in from your qualifying income: the gross total of your self-employment turnover and your UK and overseas property income, before expenses, taken from your Self Assessment return two tax years earlier.
| Qualifying income | Measured on | MTD starts |
|---|---|---|
| Over £50,000 | 2024–25 return | 6 April 2026 |
| Over £30,000 | 2025–26 return | 6 April 2027 |
| Over £20,000 | 2026–27 return | 6 April 2028 |
What you send and when
Each income source (each sole-trade business, UK property, overseas property) gets four quarterly updates a year. Updates are summaries of income and expenses, not tax returns, and you do not pay tax quarterly. You still make a final declaration and pay by 31 January after the tax year.
| Period (tax-year quarters) | Deadline |
|---|---|
| 6 April – 5 July | 7 August |
| 6 July – 5 October | 7 November |
| 6 October – 5 January | 7 February |
| 6 January – 5 April | 7 May |
You can choose calendar quarters (ending 30 June, 30 September, 31 December, 31 March) instead; the deadlines stay the same.
Example
A freelancer with £38,000 turnover who also lets a flat for £14,000 a year has qualifying income of £52,000 on the 2024–25 return. That is over £50,000, so MTD applied from 6 April 2026, with quarterly updates for two income sources: eight updates plus one final declaration a year.
Getting ready
- Pick MTD-compatible software (some bridging tools work with spreadsheets).
- Sign up through HMRC before your first quarter starts.
- Keep each sale and expense digitally as you go, so the quarterly update takes minutes.
Frequently asked questions
Do I need to use Making Tax Digital for Income Tax?
Yes if you are a sole trader or landlord registered for Self Assessment and your gross self-employment plus property income was over £50,000 in 2024–25 (from April 2026), over £30,000 in 2025–26 (from April 2027) or over £20,000 in 2026–27 (from April 2028).
What counts as qualifying income for MTD?
Only gross self-employment turnover and gross UK and overseas property income, before expenses. PAYE wages, pensions, dividends, savings interest and partnership income are not counted.
What are the MTD quarterly deadlines?
7 August, 7 November, 7 February and 7 May, for the quarters ending 5 July, 5 October, 5 January and 5 April. The final declaration is due by 31 January after the tax year.
Do I pay tax every quarter under MTD?
No. Quarterly updates only report income and expenses. Payment dates for Self Assessment, including payments on account, do not change.
I own a rental property jointly. What figure do I use?
Use your own share of the gross rent. For example, half of £30,000 rent is £15,000 of qualifying income for each owner.
Who is exempt from Making Tax Digital?
People HMRC accepts as digitally excluded, people without a National Insurance number, trustees and personal representatives, Lloyd's underwriters and a few other groups. Digital exclusion must be applied for.
Sources
- HMRC campaign: MTD for Income Tax timeline
- Bank of Scotland: Navigating the first year of MTD for Income Tax
- KPMG: Making Tax Digital for Income Tax is now live
- IPSE: Making Tax Digital for the self-employed
General guidance based on HMRC's published MTD for Income Tax timetable as of November 2026. It does not cover every exemption or special case. HMRC writes to people who must join and decides on exemptions. Not tax advice.