Making Tax Digital for Income Tax

The 2026 threshold is already live

From 6 April 2026, HMRC requires qualifying sole traders and landlords with qualifying income over £50,000 to use MTD for Income Tax, subject to the detailed rules and exemptions.

The threshold falls in later years

HMRC states that the threshold becomes over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028, based on qualifying income from the relevant earlier tax year.

Digital records are central to the process

MTD for Income Tax requires digital records of relevant self-employment and property income and expenses. HMRC also requires taxpayers to keep the supporting records they normally retain for Self Assessment.

Quarterly updates are summaries, not a replacement for good bookkeeping

HMRC requires quarterly summaries of digital records for relevant businesses or property income sources. Keeping the underlying records accurate remains important for the end-of-year tax return.

Frequently asked questions

What counts as qualifying income?

HMRC describes qualifying income as gross income from self-employment and property before expenses, based on the relevant previous tax return.

When does the £30,000 threshold start?

HMRC says people with qualifying income over £30,000 for the 2025 to 2026 tax year will need to use MTD for Income Tax from 6 April 2027, subject to the full rules.

When does the £20,000 threshold start?

HMRC says the threshold becomes over £20,000 from 6 April 2028, based on qualifying income for the 2026 to 2027 tax year.

Official guidance

HMRC: MTD for Income Tax overview · HMRC: Digital records

Reviewed September 2026