At a glance
Making Tax Digital for Income Tax applies from 6 April 2026 to some sole traders and landlords. Whether someone must use it depends on their qualifying income from an earlier Self Assessment return, not simply their final profit.
Who needs to use it from April 2026?
HMRC says you need to use Making Tax Digital for Income Tax from 6 April 2026 if you are an individual registered for Self Assessment, receive income from self-employment or property (or both), and your qualifying income was more than £50,000 in the 2024 to 2025 tax year. HMRC guidance should be used to check exemptions and the exact position.
The staged thresholds
- More than £50,000 qualifying income shown on a 2024 to 2025 return: start from 6 April 2026.
- More than £30,000 qualifying income shown on a 2025 to 2026 return: start from 6 April 2027.
- More than £20,000 qualifying income shown on a 2026 to 2027 return: start from 6 April 2028.
Qualifying income is generally the gross income from self-employment and property before expenses and tax. It is important to check the actual return and HMRC definition rather than assume an income figure is included or excluded.
What changes in practice?
People within the service must use compatible software to create, store and correct digital records for their self-employment and property income and expenses. They also use the software to submit quarterly updates. The annual tax return and payment date still matter, and the final position may include information beyond the quarterly updates.
This is why a tidy record-keeping process helps. Keep invoices, receipts and income records in a way that can be checked against the digital records. If there is more than one business or property income source, make sure each source is understood before an update is sent.
Practical checks to make now
- Check the qualifying-income figure on the relevant Self Assessment return.
- Confirm whether the income is from self-employment, property, or both.
- Review how records are kept and who will enter or review them.
- Check that any software used is compatible with Making Tax Digital for Income Tax.
- Keep your contact details and income-source information current with HMRC.
Do not rely on a generic answer
Making Tax Digital rules are being introduced in stages and exceptions can apply. If you are unsure, use HMRC’s current checker and guidance. If you need advice about organising records or discussing your circumstances, start before the next reporting deadline rather than wait until the end of the tax year.
How Exclusive Accountants can help
We can discuss the records, questions and deadlines relevant to your business or property income. We do not replace HMRC’s eligibility decision, so current GOV.UK guidance should always be checked alongside individual advice.
Source: Making Tax Digital for Income Tax on GOV.UK. Checked 1 September 2026.