Guide
Making Tax Digital for Income Tax: who is in, from when, and the deadlines
Since 6 April 2026, sole traders and landlords with more than £50,000 of qualifying income keep digital records and send HMRC quarterly updates. In April 2027 the threshold drops to £30,000, and in April 2028 to £20,000. Here is how to tell whether you are in, which year's income HMRC looks at, and when each update is due.
What Making Tax Digital for Income Tax means
If you are in, you keep your business and property records in software that works with Making Tax Digital, send HMRC an update every quarter, and file your tax return through that software instead of the old Self Assessment route. The quarterly updates are summaries of income and expenses; you do not pay tax every quarter because of them. Payment dates stay the same.
Who has to use it, and from when
| Qualifying income in tax year | Is more than | You must use MTD from |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
The test is “more than”: exactly £30,000 is not in. HMRC looks at the Self Assessment return you send for the year in the first column. So for the April 2027 wave, what matters is the 2025 to 2026 return, which is due by 31 January 2027. HMRC writes to people it thinks are in, but if no letter comes you are still responsible for checking.
What counts as qualifying income (it is not your profit)
Qualifying income is your gross income from self-employment and property, before expenses. Several sources are added together. A freelancer with £22,000 of turnover and £10,000 of rent has £32,000 of qualifying income, even if the profit is much lower.
- Counts: self-employment turnover, UK and foreign property income (foreign only if you were UK resident), your share of jointly owned property.
- Does not count: employment income under PAYE, your share of a partnership's profit, dividends (also from your own company), State and private pensions.
Jointly owned property counts only with your share: a rental bringing in £50,000 split equally between two owners is £25,000 each.
Exemptions
- Automatic: qualifying income of £20,000 or less, no National Insurance number before the tax year starts, personal representatives of someone who has died, and some others listed by HMRC. Partnerships do not need to use it yet.
- On application: if you are digitally excluded, meaning it is not reasonable for you to use software, for example because of age, health, disability, religious beliefs or no internet access where you live. Being unused to software or having few records is not enough.
There is no automatic age exemption. Age counts only as part of a digital exclusion application.
Making Tax Digital quarterly deadlines
Each update covers the tax year so far. With the standard periods:
| Update covers | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
You can choose calendar quarters instead (ending 30 June, 30 September, 31 December and 31 March); the deadlines stay the same. The tax return for the year is still due by 31 January after the year ends. If you start in April 2027, your first update is due on 7 August 2027.
Penalties
Late updates earn penalty points. For the 2026 to 2027 tax year HMRC does not apply points for late quarterly updates; late tax returns still get points. From 2027 to 2028, each late quarterly update earns one point, and at 4 points you pay a £200 penalty.
If you might be in from April 2027
- Add up your 2025 to 2026 self-employment turnover and gross rents. Over £30,000 means you are in.
- Pick software from HMRC's list of compatible products. Some are free for simple cases.
- Sign up before your start date, and start keeping digital records from 6 April 2027.
- Put the four deadlines in your calendar. The MTD checker gives you a calendar file.
Questions
Do I need Making Tax Digital from April 2027?
Yes, if your qualifying income (self-employment turnover plus gross property income) in the 2025 to 2026 tax year was more than £30,000, unless you are exempt.
Is qualifying income my profit or my turnover?
Your turnover: gross self-employment and property income before expenses. Employment income, dividends, pensions and partnership profit shares do not count.
When is the first Making Tax Digital deadline?
7 August, for the period 6 April to 5 July. If you start on 6 April 2027, your first update is due by 7 August 2027.
Is there an age exemption for Making Tax Digital?
No automatic one. You can apply as digitally excluded if age, health, disability, religious beliefs or no internet access make using software unreasonable for you.
Will I be fined for a late quarterly update?
Not with points in the 2026 to 2027 tax year. From 2027 to 2028 each late update earns a point, and 4 points mean a £200 penalty.
Sources
- HMRC: Find out if and when you need to use Making Tax Digital for Income Tax (updated 26 March 2026)
- HMRC: Work out your qualifying income (updated 11 September 2026)
- HMRC: Find out if you can get an exemption (updated 28 May 2026)
- HMRC: Send quarterly updates, deadlines and penalties (updated 16 October 2026)
- HMRC: Choose the right software for Making Tax Digital for Income Tax
- GOV.UK: Self Assessment tax return deadlines
This guide reflects the rules as of October 2026 and is not tax advice. For your own case, ask a tax advisor.