Making Tax Digital for Income Tax, made simple
What it is, who it applies to and when, with links to the official GOV.UK guidance. General information to help you get ready, with no estimates and nothing applied to your own figures.
What it is
Making Tax Digital for Income Tax is HMRC’s new way to do Self Assessment for sole traders and landlords. If it applies to you, you keep digital records of your self-employment and property income and expenses, and use compatible software to send HMRC a summary every three months, called a quarterly update. You still send a tax return after the end of the tax year, through your software.
Who it applies to, and when
GOV.UK says you need to use it if you are a sole trader or landlord registered for Self Assessment, you get income from self-employment or property (or both), and your qualifying income is over the threshold for the tax year HMRC looks at:
| Qualifying income over | In the tax year | You need to use it from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your total income from self-employment and property before any expenses are taken off. In other words, it’s turnover, not profit. GOV.UK explains exactly what counts and what doesn’t.
Partnerships will also need to use it in future, and HMRC will set out that timeline later. Some people are exempt, for example if they are digitally excluded.
What it means day to day
- Keep your business records in software that works with Making Tax Digital for Income Tax.
- Send a quarterly update every three months for each self-employment and property business. GOV.UK says these are summaries, not tax returns.
- Send your tax return after the end of the tax year through your software.
General information only. Agentic CFO gives no tax estimates, no set-aside figures and no promises about Making Tax Digital, and our paid products contain no tax content. To check your own position, use HMRC’s official checker below or have a word with your accountant.
Official GOV.UK guidance
- Find out if and when you need to use Making Tax Digital for Income Tax ↗ (includes HMRC’s checker)
- Work out your qualifying income ↗
- Find out if you can get an exemption ↗
- Find software that works with Making Tax Digital for Income Tax ↗
- Sign up for Making Tax Digital for Income Tax ↗
- Use Making Tax Digital for Income Tax ↗
Compatible software in our galleries
The Trade and Shop galleries list Making Tax Digital software alongside other tools. A listing isn’t a recommendation, and HMRC’s finder is the official list.
Checked against GOV.UK on 17 Oct 2026. Rules can change, so always check the GOV.UK pages above.