Reviewed by Mustafa Bilgic
Founder, WebCalculator
Thresholds and rules from GOV.UK Making Tax Digital for Income Tax guidance, checked on 25 September 2026. Estimates only, not tax advice.
Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. Enter your self-employment and property income for each year to see when you need to start and your first quarterly deadlines.
Income before expenses, for each tax year
You need to use Making Tax Digital (MTD) for Income Tax if you're a sole trader or landlord registered for Self Assessment, you get income from self-employment, property or both, and your qualifying income is more than the threshold for the tax year HMRC checks. The threshold falls in three steps:
| Qualifying income | Tax year checked | Start date |
|---|---|---|
| Over £50,000 | 2024/25 | 6 April 2026 |
| Over £30,000 | 2025/26 | 6 April 2027 |
| Over £20,000 | 2026/27 | 6 April 2028 |
HMRC reviews each Self Assessment return and writes to you if your qualifying income is over the threshold. If you don't get a letter, it's still your responsibility to check and sign up in time.
Qualifying income is your total income from self-employment and property before expenses, also known as turnover. GOV.UK's example: £25,000 of rental income and £27,000 of self-employment income give qualifying income of £52,000. For a jointly owned property only your share counts, so a £50,000 rent shared equally with a sibling counts as £25,000 each.
Other income does not count, including employment (PAYE), your share of profit from a partnership, dividends, the State Pension and private pensions. If you're a sole trader who traded for less than a full year, HMRC annualises your income, so 6 months of trading counts double. Landlords need to annualise part-year property income themselves.
You keep digital records in compatible software and send a quarterly update every 3 months for each self-employment and property business. With standard update periods the deadlines are 7 August, 7 November, 7 February and 7 May, and your tax return is still due by 31 January after the end of the tax year. MTD doesn't change how you pay tax or the dates payments are due.
Late quarterly updates earn penalty points, and reaching the points threshold means a £200 penalty. HMRC will not apply penalty points for late quarterly updates during 2026/27, although they still apply to late tax returns. You still send a normal Self Assessment return for the tax year before you start.
Work out the tax on your profits with the self-employed tax calculator or the rental income tax calculator. If a deadline slips, the Self Assessment penalty calculator and the late payment interest calculator show what HMRC can charge.
Qualifying income over £50,000 for 2024/25 means you use MTD for Income Tax from 6 April 2026. Over £30,000 for 2025/26 means from 6 April 2027, and over £20,000 for 2026/27 means from 6 April 2028.
Your total self-employment and property income before expenses, including your share of any jointly owned property. Employment income, your share of partnership profit, dividends and pensions don't count.
Turnover. Qualifying income is the amount before expenses, so a landlord with £35,000 of rent and £20,000 of costs has qualifying income of £35,000, not £15,000.
With standard update periods, by 7 August, 7 November, 7 February and 7 May. Your tax return is still due by 31 January after the end of the tax year.
No. HMRC won't apply penalty points for late quarterly updates during 2026/27, but they still apply to late tax returns. After that, late updates earn points, and reaching the threshold means a £200 penalty.
Your wages taxed through PAYE don't count towards qualifying income. Only self-employment and property income before expenses does, so an employee with £25,000 of rent in 2026/27, and less in earlier years, would need MTD from 6 April 2028.