Making Tax Digital for Income Tax: deadlines & who's affected
Making Tax Digital for Income Tax (MTD for ITSA) changes how self-employed people and landlords report to HMRC: instead of one annual Self Assessment return, you keep digital records and send quarterly updates through compatible software. It's being phased in by income — here's exactly when it reaches you.
When does it start?
The obligation is phased in, highest incomes first: April 2026 (£50k+), then April 2027 (£30k+), then April 2028 (£20k+). Once your qualifying income is over a threshold there is no opt-out, so the date that matters is the first one your income clears.
| Tax year | Mandatory from | Qualifying income at/above |
|---|---|---|
| 2026/27 | 6 April 2026 | £50,000 |
| 2027/28 | 6 April 2027 | £30,000 |
| 2028/29 | 6 April 2028 | £20,000 |
What counts as “qualifying income”?
Qualifying income is your combined gross self-employment and property income — turnover and rents beforeexpenses. Add them together: if the total is over a threshold in the table, you're mandated from that date. Using profit instead of the gross figure is the most common mistake, and it can put you on the wrong side of a deadline.
Who's affected — and who isn't
It applies to sole traders and landlords whose qualifying income is over the relevant threshold. If your combined income is below the lowest announced figure (£20,000) you're not mandated yet, though you can sign up voluntarily. Partnerships and limited companies follow a different timetable, and a small number of people are exempt or can apply to HMRC if they're digitally excluded — if that might be you, check the guidance or speak to an accountant.
What you'll have to do
- Keep digital records of your business income and expenses.
- Send a quarterly update to HMRC (four a year) from compatible software.
- Finalise after the tax year with a final declaration, which replaces the Self Assessment return for that income.
You don't need expensive software to do any of this. Options run from genuinely free tools and low-cost bridging software that files from a spreadsheet, through to full cloud accounting.
What to do now
Add up your gross self-employment and property income and compare it to the table. If you're over a threshold, the only real task is to have HMRC-recognised software ready before your start date. The finder tells you your exact date and the cheapest tool that fits your situation in a couple of minutes.
Frequently asked questions
- When does Making Tax Digital for Income Tax start?
- It's phased in by income. The highest incomes are mandated first, and the threshold steps down over the following years — see the table above for the exact dates and figures.
- What is qualifying income for MTD?
- Your combined gross income from self-employment and property — that's turnover and rents before you take off any expenses. It's a common mistake to use profit; HMRC uses the gross figure.
- Do I need to comply if I'm under the threshold?
- Not yet. If your qualifying income is below the lowest announced threshold you're not mandated, but you can join voluntarily — and the threshold has only ever moved downward, so it's worth being ready.
- Does MTD replace my Self Assessment tax return?
- For your self-employment and property income, the quarterly updates plus a final declaration after the tax year take the place of the annual Self Assessment return. Other income still has to be reported as usual.
- What happens if I miss a deadline?
- Late quarterly updates and payments attract penalties under HMRC's points-based system. The current details are on GOV.UK — and the simplest way to avoid them is to have compatible software in place before you're mandated.
Keep reading
Dates and thresholds reflect HMRC's announced figures and are kept in step with our recognised-software data. This is general information, not tax advice — confirm your own position with HMRC or a qualified accountant.