Who needs Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD for Income Tax) is HMRC’s system for keeping digital records and sending income and expenses updates every quarter. It started on 6 April 2026 and is being phased in by income.
Start dates and income thresholds
| Starts | Applies if your qualifying income is over |
|---|---|
| 6 April 2026 | £50,000 |
| 6 April 2027 | £30,000 |
| 6 April 2028 | £20,000 |
Qualifying income is your gross income from self-employment and property, before expenses and allowances. HMRC applies the thresholds using the figures on your tax return from two tax years earlier, so your 2024/25 return decides whether you are in from April 2026. New businesses are generally brought in later. Check GOV.UK for the current rules and for exemptions.
What you have to do
- Sign up for MTD for Income Tax with HMRC, yourself or through an agent.
- Keep digital records of your business income and expenses.
- Send four quarterly updates a year using HMRC-recognised software.
- Complete a final declaration by 31 January after the tax year. This replaces the usual Self Assessment return.
If you have both self-employment and property income, each business needs its own quarterly updates.
Where this calculator fits
MTD Software works out your cumulative quarterly figures from your bank statements and saves them as a PDF. You then enter them into HMRC-recognised software such as 123 Sheets to submit, or send them to your accountant. See GOV.UK’s list of compatible software.
Related guides
- Who needs Making Tax Digital for Income Tax
- Quarterly update deadlines
- Allowable expenses and categories
- Cumulative figures explained
This guide is general information, not tax advice. Always check GOV.UK or ask an accountant about your own position.