Definition
MTD for Income Tax (Making Tax Digital for Income Tax) requires sole traders and landlords with qualifying income above a threshold to keep digital records, send quarterly updates to HMRC through compatible software and submit their tax return from that software by 31 January. The threshold is £50,000 from 6 April 2026, £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
What counts as qualifying income
Qualifying income is gross self-employment turnover plus gross property income, before expenses. Employment income, dividends and partnership income do not count. HMRC uses the Self Assessment return from two tax years earlier, so 2024/25 income decides who joins from 6 April 2026.
A landlord with £28,000 of rent and £24,000 of sole trade turnover in 2024/25 has qualifying income of £52,000. MTD for Income Tax applies from 6 April 2026, even if profit after expenses is far lower.
What you send
Four quarterly updates a year, due 7 August, 7 November, 7 February and 7 May, then the tax return by 31 January. Tax is still paid on the usual Self Assessment dates. People who are digitally excluded can apply to HMRC for an exemption.
The guide to the £50k, £30k and £20k MTD thresholds shows when each group joins, and SmartFiling’s MTD for Income Tax service is built for those now in scope.
Related questions
- Does Making Tax Digital for Income Tax apply to me? Add your gross self-employment and property income from the return two years earlier and compare it with that year's threshold.
- Who is exempt from MTD for Income Tax? Anyone under the threshold, plus people HMRC accepts are digitally excluded; see MTD exemptions.
Related terms
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Making Tax Digital
Making Tax Digital (MTD) is HMRC's programme requiring businesses to keep digital records and send tax information to HMRC through compatible software.
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Quarterly update
A quarterly update is a summary of business or property income and expenses that someone within MTD for Income Tax sends to HMRC through compatible software every three…
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Digital records
Digital records are the business records that Making Tax Digital (MTD) requires to be kept in software rather than on paper.
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Self Assessment
Self Assessment is the system HM Revenue and Customs (HMRC) uses to collect Income Tax that is not taken automatically, for example through PAYE.
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