Making Tax Digital Checker
Do you need Making Tax Digital for Income Tax, and when? Answer three quick questions to see your start date, your first deadlines and what to do next. For UK sole traders and landlords.
Check if you need Making Tax Digital
This checker is general guidance based on HMRC's published rules as of October 2026, not tax advice. HMRC writes to people it expects to need Making Tax Digital, and your accountant can confirm your position. Nothing you enter is sent to or stored by The Growth Brothers.
Do I need Making Tax Digital? If you're a sole trader or landlord, you'll need to use Making Tax Digital for Income Tax once your qualifying income (self-employment and property income before expenses) goes over the threshold. That's £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. You'll keep digital records, send quarterly updates using compatible software, and file a final declaration instead of your usual Self Assessment return.
Making Tax Digital start dates and thresholds
HMRC looks at the qualifying income on your Self Assessment return for one tax year to decide whether you need to start from the April after the return is due.
| Qualifying income | Tax year HMRC checks | You start using MTD |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
| £20,000 or less | n/a | Not required (you can join voluntarily) |
Partnerships don't need to use it yet. HMRC will announce a timeline for them later. Source: GOV.UK, check if you're eligible for Making Tax Digital for Income Tax.
What counts towards the MTD threshold?
Qualifying income is your gross income from self-employment and property, before you take off any expenses. It's turnover, not profit, which catches many people out.
Counts
- Sales from all your self-employed businesses, added together
- Rent from UK and overseas property (if you're UK resident)
- Your share of rent from jointly owned property. For example, half of £50,000 joint rent is £25,000.
Doesn't count
- Wages and salary from employment (PAYE)
- State and private pensions
- Dividends, including from your own limited company
- Your share of partnership profits
Example: £25,000 of rent plus £27,000 of self-employed sales gives qualifying income of £52,000, even if your actual profit is much lower. Source: GOV.UK, work out your qualifying income.
What you'll need to do under Making Tax Digital
- Keep digital records of your income and expenses in MTD-compatible software (or a spreadsheet linked with bridging software).
- Send a quarterly update to HMRC every three months. It's a summary of your income and expenses, not a full tax return.
- Submit a final declaration by 31 January after the tax year ends. This replaces your Self Assessment return.
| Quarter (standard) | Update due |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
| Final declaration | 31 January after the tax year |
Missed deadlines build up penalty points under a points-based system rather than an instant fine, and a financial penalty applies once you reach the threshold. HMRC has said it won't issue penalty points for late quarterly updates during your first year of Making Tax Digital, but it's still best to file on time and build the habit early.
Who is exempt from Making Tax Digital?
You're automatically exempt if your qualifying income is £20,000 or less, or if you didn't have a National Insurance number before the start of the tax year. Other automatic exemptions cover trustees, Lloyd's underwriting members and people whose tax is managed under a power of attorney or deputyship.
Some people are exempt until at least April 2027, including foster and kinship carers claiming qualifying care relief, people claiming averaging relief, and those who file the trust income (SA107) or residence and remittance (SA109) pages.
You can apply for an exemption if you're digitally excluded, meaning it isn't reasonable for you to use software because of your age, health, disability, religious beliefs or location. Simply preferring paper, or the cost of software, doesn't count. Source: GOV.UK, exemptions from Making Tax Digital for Income Tax.
Frequently asked questions
Who needs to use Making Tax Digital for Income Tax?
Sole traders and landlords registered for Self Assessment whose qualifying income is over the threshold. It started on 6 April 2026 for qualifying income over £50,000 in 2024 to 2025, extends on 6 April 2027 to qualifying income over £30,000 in 2025 to 2026, and on 6 April 2028 to qualifying income over £20,000 in 2026 to 2027.
Is the Making Tax Digital threshold based on turnover or profit?
Turnover. Qualifying income is your total income from self-employment and property before expenses. Employment income, pensions, dividends and your share of partnership profits do not count.
Do limited companies need Making Tax Digital for Income Tax?
No. Limited companies pay Corporation Tax, not Income Tax, so MTD for Income Tax does not apply to the company. Dividends you take from your own company do not count towards your qualifying income either. VAT-registered companies already use Making Tax Digital for VAT.
When are the Making Tax Digital quarterly deadlines?
For the standard quarters, updates are due on 7 August, 7 November, 7 February and 7 May. You then submit a final declaration by 31 January after the end of the tax year, which replaces the Self Assessment return.
What if my income is £20,000 or less?
If your qualifying income is £20,000 or less you are automatically exempt under the current rules and carry on filing a normal Self Assessment return. You can still choose to use MTD-compatible software voluntarily.
Do partnerships need to use Making Tax Digital?
Not yet. HMRC has said partnerships will need to use Making Tax Digital for Income Tax in the future and will set out a timeline later. Your share of partnership profit does not count towards your own qualifying income.
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