Digital records
Kept in MTD-compatible software: all-in-one, or a spreadsheet with bridging software.
Making Tax Digital for Income Tax
Do you need Making Tax Digital for Income Tax? And from when?
Three questions, four if your date is not settled by 2027. You will need a rough idea of your turnover for the last two tax years. Nothing you type leaves this page.
Your answer appears here as you go.
Rules checked against gov.uk on 18 September 2026. Rules change: check gov.uk before you rely on this. This checker is general guidance, not advice on your own position.
How HMRC decides
| Start date | Qualifying income | Measured on your tax return for |
|---|---|---|
| 6 April 2026 | Over £50,000 | 2024 to 2025 |
| 6 April 2027 | Over £30,000 | 2025 to 2026 |
| 6 April 2028 | Over £20,000 | 2026 to 2027 |
Qualifying income is your turnover from self-employment plus your property income, before expenses. “Over” means over: exactly £30,000 doesn't count. If you started part-way through a year, HMRC scales the figure up to a full year. Once you are in, HMRC's current guidance lets you leave only if your income stays under the threshold for a run of tax years, so check gov.uk if that applies.
What counts
- Self-employed turnover (if you are in CIS, the gross figure before deductions)
- UK rental income
- Overseas rental income, if you are UK resident
- Your share of a jointly owned property
What doesn't
- Wages from a job
- Pensions
- Dividends from your own company
- Your share of partnership profits
Who is exempt
Automatic exemptions. Qualifying income of £20,000 or less; no National Insurance number; ministers of religion; Lloyd's underwriters; people claiming Married Couple's Allowance or Blind Person's Allowance; people whose tax is handled under a power of attorney or by a legal guardian. Partnerships aren't included yet.
For 2026 to 2027 only. If your 2024 to 2025 return claimed averaging relief or qualifying care relief (foster and kinship carers), or included the trusts (SA107) or residence (SA109) pages.
By application. You can apply if you're digitally excluded because of age, health or disability, religious belief or having no internet access. “I've always used paper” isn't accepted.
General guidance, summarised from gov.uk. Exemptions have detail and conditions, so check the source or ask us.
What happens once you're in
Quarterly updates
Totals, not receipts. Due 7 August, 7 November, 7 February and 7 May.
Your tax return
Through software by 31 January. Payment dates don't change.
In from April 2027? We send the updates.
Our sole trader package includes all four quarterly updates, from £60 a month + VAT.
Questions people ask
Does Making Tax Digital replace my Self Assessment tax return?
Almost. Once you are in, you send HMRC a summary every three months from your software, and you then finish the year with a final declaration through your software by 31 January. That final declaration takes the place of the old tax return. Payment dates do not change.
What is qualifying income?
Your turnover from self-employment plus your property income, before expenses. Not profit. If you are paid under the Construction Industry Scheme, use the gross figure before deductions. Wages, pensions and dividends from your own company do not count.
Is exactly £30,000 over the threshold?
No. The test is income over the threshold. If your qualifying income is exactly £30,000, that year does not put you in.
Can I just keep using a spreadsheet?
Yes, as long as it is joined to HMRC by bridging software that sends the figures. Many people find it easier to move to an all-in-one app, and our packages include a licence. We will tell you honestly which suits you.
Do I have to stay in once I join?
HMRC's current guidance lets you leave only if your qualifying income stays below the threshold for several tax years in a row. That is general guidance and it can change, so check gov.uk or ask us.
What if I miss a quarterly update?
Late quarterly updates earn penalty points, and enough points lead to a financial penalty. HMRC has said it will go gently in the first year. Do not rely on that: our packages send your updates for you.
I was told I am exempt. Is that true?
Some people are exempt, for example those whose qualifying income is £20,000 or less, people without a National Insurance number, and people who are digitally excluded. Preferring paper is not enough. The list further up this page has the detail, and gov.uk has the rest.