Who it applies to, and when
Making Tax Digital for Income Tax covers individuals with income from self-employment, property, or both. It is phased in by the size of that income, measured from an earlier tax return.
| Qualifying income | Measured on | Starts |
|---|---|---|
| Over £50,000 | Your 2024 to 2025 tax return | 6 April 2026 |
| Over £30,000 | Your 2025 to 2026 tax return | 6 April 2027 |
| Over £20,000 | Your 2026 to 2027 tax return | 6 April 2028 |
Qualifying income is turnover, not profit. A sole trader with £60,000 of sales and £25,000 of costs is over the £50,000 threshold.
Limited companies and partnerships are not part of this phase. Company directors are only affected if they also have self-employment or property income of their own above the threshold.
What changes
- Your income and expenses are kept as digital records in software HMRC recognises.
- A summary of each quarter goes to HMRC from that software.
- After the tax year ends, you add any adjustments, reliefs and allowances and submit your final return.
- You still pay your tax by the usual Self Assessment dates.
The first year’s deadlines
| What | Due |
|---|---|
| First quarterly update | 7 August 2026 |
| Second quarterly update | 7 November 2026 |
| Third quarterly update | 7 February 2027 |
| Fourth quarterly update | 7 May 2027 |
| Final return for 2026 to 2027 | 31 January 2028 |
How to get ready
The practical change is keeping records as you go rather than once a year. Moving your bookkeeping into MTD-compatible software and connecting your bank feed now means the quarterly updates become a review rather than a scramble. HMRC has said it will start signing up people who need to use MTD for 2026 to 2027 and have not done so themselves.
If we keep your books, we set up the software, send the quarterly updates and prepare the final return for you.
Frequently Asked Questions
Is the MTD threshold based on profit or turnover?
Turnover. Qualifying income is your total self-employment and property income before expenses.
Does Making Tax Digital for Income Tax apply to limited companies?
No. It applies to individuals with self-employment or property income. Companies are not part of this phase.
When are the MTD quarterly updates due?
For the 2026 to 2027 tax year, by 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027, with the final return by 31 January 2028.
Can my accountant send the updates for me?
Yes. An agent can keep your digital records and submit the quarterly updates and final return on your behalf.
Sources (2)Checked 29 October 2026
This guide is general information, not advice for your situation. Rules change, so check the official sources or talk to us before acting on it.