Making Tax Digital for Income Tax: who needs it and when
Who has to use Making Tax Digital for Income Tax, from when, what it asks you to do and what SavingTax can and cannot help with.
What is Making Tax Digital for Income Tax?
It is HMRC's way of doing Self Assessment for sole traders and landlords. Instead of one annual return, you keep digital records and send HMRC updates during the year using compatible software.
Who needs to use it, and when?
GOV.UK says you need to use it if you are a sole trader or landlord registered for Self Assessment, you get income from self-employment or property (or both) and your qualifying income is more than the threshold for the tax year. Qualifying income is your total self-employment and property income before expenses (turnover), not your profit. Employment income, dividends and other income are not counted.
- More than £50,000 in the 2024-25 tax year: use it from 6 April 2026. GOV.UK says that if you should have started and have not, you can still sign up.
- More than £30,000 in the 2025-26 tax year: use it from 6 April 2027.
- More than £20,000 in the 2026-27 tax year: use it from 6 April 2028. GOV.UK describes this as announced at the Autumn Budget 2024, with legislation to confirm when it starts, so it is not yet settled.
GOV.UK says partnerships will also need to use it in the future, with the timeline to be set later. Some people can get an exemption, for example if they are digitally excluded, but exempt people still have to report their income in a Self Assessment tax return.
What does it ask you to do?
- Keep digital records of your self-employment and property income and expenses, using compatible software.
- Send quarterly updates every 3 months. For 2026-27, GOV.UK gives the deadlines as 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027.
- Submit your tax return using your software. For 2026-27 the deadline is 31 January 2028.
To sign up you need to be registered for Self Assessment and to have submitted a tax return in the last 2 years, and you choose and authorise your software or decide how an agent will act for you.
What SavingTax can and cannot do
SavingTax is not Making Tax Digital software and does not send anything to HMRC. Its free Making Tax Digital checker gives an estimate of whether and when it could apply to you, based on the self-employment and property income you enter. The Tax Calendar shows key tax dates.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Use Making Tax Digital for Income Tax
- GOV.UK: Find out if you can get an exemption
This page is general information, not financial, tax or legal advice. Rules and dates can change, so check GOV.UK for the current position. Your own position depends on your circumstances. For advice, speak to a qualified professional.