Do I need MTD, and when?
An independent, plain-English guide for UK sole traders and landlords, with a finder covering every HMRC-recognised product.
The thresholds
| Qualifying income over | In tax year | Use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Source: HMRC, Find out if and when you need to use Making Tax Digital for Income Tax.
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Frequently asked
Who needs to use Making Tax Digital for Income Tax?
Sole traders and landlords registered for Self Assessment whose qualifying income from self-employment and property is over the threshold for the relevant tax year. HMRC guidance.
What counts as qualifying income?
Your total self-employment and property income before expenses (turnover). Employment (PAYE) income, dividends, pensions and your share of partnership profit do not count. HMRC guidance.
Does HMRC recommend any MTD software?
No. HMRC says all listed software has been through its recognition process, but it does not recommend any product. HMRC guidance.
Do I still need to file a Self Assessment return?
Yes. You still submit a Self Assessment return for the tax year before you start using MTD, and once you are using MTD you submit your tax return through your software by 31 January following the tax year. HMRC, HMRC software guidance.