# Making Tax Digital for Income Tax — sole traders and landlords

> Work & self-employment · Last updated 22 August 2026

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## Quick answer

Making Tax Digital for Income Tax means keeping digital records and sending quarterly updates through compatible software if you are a sole trader or landlord over the qualifying-income threshold. From 6 April 2026 that is over £50,000 of self-employment and property income on your 2024/25 return; from April 2027 over £30,000; from April 2028 over £20,000. Official: https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax

## Who should skip this

Skip this if you are PAYE-only with no Self Assessment, or you only do MTD for VAT. Limited companies use Corporation Tax rules, not this Income Tax MTD programme.

MTD for Income Tax is live for higher-turnover sole traders and landlords from April 2026. Qualifying income is gross self-employment plus property income before expenses, taken from the previous year’s tax return. HMRC writes to people who must join.

## Key facts

- Mandated from 6 April 2026 if qualifying income was over £50,000 in 2024/25
- From 6 April 2027 if over £30,000 in 2025/26; from 6 April 2028 if over £20,000 in 2026/27
- Qualifying income is total gross self-employment and property income — not profit after expenses
- You must use HMRC-recognised software for digital records, quarterly updates and the year-end return
- Exemptions exist for digitally excluded people and some specified groups — check GOV.UK rather than assuming

## Do I need Making Tax Digital this year?

If you are already in Self Assessment as a sole trader or landlord, check the GOV.UK tool and any HMRC letter. Joining late if you are mandated can mean penalties. You can sign up even if you have not had a letter yet.

Work out qualifying income: https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax. Multiple trades and properties are added together. PAYE salary does not count toward this threshold.

*MTD for Income Tax rollout (GOV.UK, checked August 2026)*

| Qualifying income in tax year | Must use MTD from |
| --- | --- |
| Over £50,000 in 2024/25 | 6 April 2026 |
| Over £30,000 in 2025/26 | 6 April 2027 |
| Over £20,000 in 2026/27 | 6 April 2028 |

## What do I actually send HMRC?

Keep income and expenses in software that can talk to HMRC. Submit quarterly updates (you can align to calendar quarters). File the final declaration through the same software instead of the old SA100-only habit.

Landlords already had a July 2026 news note on this site. The duty is the same programme for property and trading. Digitally excluded people can apply for an exemption. Step-by-step: [how to join Making Tax Digital](/how-to/sign-up-making-tax-digital/).

## Frequently asked questions

### Does MTD replace Self Assessment?

It digitises how Self Assessment businesses report. You still have a tax bill and the 31 January payment date unless HMRC says otherwise.

### I’m under the threshold — should I join anyway?

Voluntary sign-up is allowed and can be sensible if you already use accounting software. It is not required until you cross a mandation line.

## Primary source

https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax

## Related

- [How to sign up for Making Tax Digital](https://moneyguide.org.uk/how-to/sign-up-making-tax-digital/)
- [Self-employment basics](https://moneyguide.org.uk/work-earnings/self-employment-basics/)
- [Rental income tax](https://moneyguide.org.uk/benefits-tax/rental-income-tax-uk/)
- [MTD for landlords (answer)](https://moneyguide.org.uk/answers/how-does-making-tax-digital-work-for-landlords/)
- [VAT calculator](https://moneyguide.org.uk/tools/vat-calculator/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.