Quick answer
You need MTD for Income Tax if you’re a sole trader or landlord with qualifying income over £50,000 (from 6 April 2026), over £30,000 (from 6 April 2027) or over £20,000 (from 6 April 2028). Qualifying income is gross self-employment and property income, before expenses.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax changes how sole traders and landlords report to HMRC. Instead of one tax return a year, you keep digital records, send HMRC a summary every quarter using compatible software, and finish the year with a final declaration.
It started on 6 April 2026. It doesn’t change how much tax you pay or when you pay it. It changes how you keep records and how you report.
Who has to use it?
You need to use MTD for Income Tax if you’re a sole trader, a landlord, or both, and your qualifying income is over the threshold for that year. HMRC decides using the tax return you filed the January before each start date.
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
What counts as qualifying income
Qualifying income is your gross income from self-employment and property, added together, before any expenses. It includes UK and overseas property income. It doesn’t include:
salary or wages from a job
pension income
dividends and savings interest
your share of a partnership’s income (partnerships aren’t in MTD yet)
For example, a sole trader with £38,000 of sales and a rental flat bringing in £15,000 a year has qualifying income of £53,000. That’s over the £50,000 threshold, even if their profit is much lower.
Who doesn’t have to join
Some people don’t need to use MTD for Income Tax, or not yet:
partnerships, which will join later
people HMRC accepts are digitally excluded, for example because of age, disability or where they live (you have to apply for this exemption)
some others, such as trustees and the personal representatives of someone who has died
HMRC’s guidance on GOV.UK has the full list. If you’re under the threshold, you can also choose to join voluntarily.
How to sign up
Check your qualifying income against the threshold for your start date.
Choose software that works with MTD for Income Tax.
Sign up on GOV.UK with your Government Gateway details, or ask your accountant to sign you up.
Keep digital records from the first day of the tax year you join.
HMRC has written to many people it expects to be in scope, but it’s up to you to check whether you need to join, even if you haven’t had a letter.