You need Making Tax Digital for Income Tax if you are a sole trader or landlord registered for Self Assessment and your qualifying income is over the threshold: over £50,000 in 2024-25 means from 6 April 2026, over £30,000 in 2025-26 from 6 April 2027, and over £20,000 in 2026-27 from 6 April 2028. Qualifying income is your self-employment and property income before expenses. You then send quarterly updates by 7 August, 7 November, 7 February and 7 May.
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Your qualifying income
Enter income before expenses (turnover) from your Self Assessment return for each year. For property you own jointly, enter your share. Leave a year blank if you do not know it yet.
How it works
1. Add up your qualifying income for the tax year: your total self-employment income plus your property income, before expenses, as shown on your Self Assessment return. Employment (PAYE) pay, your share of partnership profit, dividends and pensions do not count.
2. Compare it with the threshold for that year. It must be more than the threshold: over £50,000 for 2024-25 (start 6 April 2026), over £30,000 for 2025-26 (start 6 April 2027), over £20,000 for 2026-27 (start 6 April 2028). The first year over the line sets your start date.
3. Keep digital records and send quarterly updates using compatible software. Each update is cumulative from 6 April and is due by 7 August, 7 November, 7 February and 7 May. You still submit a tax return and pay by 31 January after the tax year.
Worked example. A landlord who is also self-employed had £18,000 of self-employment income and £14,000 of rent in 2024-25: £32,000, which is not over £50,000. In 2025-26 they had £19,000 and £14,400: £33,400, which is over £30,000. They must use Making Tax Digital for Income Tax from 6 April 2027. Their first quarterly update (6 April to 5 July 2027) is due by 7 August 2027.
Landlord? The UK Landlord Income & Expense Tracker (£16.99, Excel and Google Sheets) keeps your rent and expense records and adds up each MTD quarter with its deadline. It is not HMRC-recognised software and does not submit anything to HMRC: you still need compatible or bridging software to send the updates. Read the guide to MTD quarterly updates for landlords.
Frequently asked questions
What is qualifying income for Making Tax Digital?
Your total income from self-employment and property before expenses (turnover), based on the Self Assessment return for that tax year. Other income such as employment (PAYE) pay, your share of partnership profit, dividends and pensions does not count.
I have a job and one rental property. Do I need MTD?
Only your rent counts, not your salary. If the gross rent (your share, if jointly owned) is over the threshold for the year, you need it; if not, you don't under the current thresholds.
Is the threshold based on profit or turnover?
Turnover: income before expenses. Someone with £35,000 of rent and £20,000 of costs has qualifying income of £35,000, not £15,000.
When are the quarterly update deadlines?
7 August, 7 November, 7 February and 7 May. With standard update periods each update covers 6 April to 5 July, 5 October, 5 January and 5 April. You can choose calendar update periods (to the end of June, September, December and March) if your accounting period runs 1 April to 31 March; the deadlines are the same.
Is there a penalty for a late quarterly update?
Not for the 2026 to 2027 tax year: GOV.UK says there are no penalties for missing a quarterly update deadline that year. From later years each missed deadline earns a penalty point, and reaching 4 points means a £200 penalty, then £200 for each further missed deadline.
Do I still need to file a tax return?
Yes. You submit your tax return using your software and pay any tax by 31 January after the end of the tax year. You also still need to file the return for the year before you start.
Can I stop using MTD if my income falls?
Once you use it, you can choose to opt out if your qualifying income drops below the relevant threshold for 3 tax years in a row.
Does MTD for Income Tax apply to companies and partnerships?
Not to limited companies. Partnerships will need to use it in the future, and HMRC says it will set out the timeline later.
More free tools
Related guides: MTD quarterly updates for landlords.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax – GOV.UK
- Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK
- Send quarterly updates – GOV.UK
- Penalties for Making Tax Digital for Income Tax – GOV.UK
Last checked: November 2026. Thresholds and dates as published by HMRC for UK sole traders and landlords. It does not cover exemptions, non-residents or foreign income. This tool gives general information, not legal, tax or financial advice. Figures are estimates based on what you enter and the rules in the sources above; rules change, so check the sources or take professional advice before relying on a result. Made by PHK MEDIA LTD.