Making Tax Digital for Income Tax

Who will need to use Making Tax Digital for Income Tax

You’ll need to use Making Tax Digital for Income Tax if all of the following apply:

• you’re an individual registered for Self-Assessment

  
  

• you get income from self-employment or property, or both

• your qualifying income is more than £30,000

  
  

What is included in your qualifying income

Your qualifying income is the total gross income that you get in a tax year from self-employment and property.

Find out what’s included in your qualifying income.

Your qualifying income is the total income you get in a tax year from self-employment and property.

All other sources of income reported through Self-Assessment, such as income from employment (PAYE), a partnership or dividends (including those from your own company), do not count towards your qualifying income.

HMRC will assess your gross income (also called your turnover) before you deduct expenses.

For example, your gross income (income before you deduct expenses) could be:

• £25,000 from rental income

• £27,000 from self-employment income

In this example, your total qualifying income would be £52,000.

Check if you need to use Making Tax Digital for Income Tax, Contact Amin & Co Accountants for further information.

When to start using Making Tax Digital for Income Tax

Making Tax Digital for Income Tax will become mandatory in phases, starting from 6 April 2026.

You may be able to voluntarily sign up now. This will help HMRC test and develop the service.

You do not currently need to use the service if your qualifying income is £30,000 or less.

The government has announced that if your total gross income from self-employment and property is over £20,000, you’ll need to use Making Tax Digital for Income Tax in the future. We’ll set out the timeline for this at a later date.

We will also set out when partnerships need to use Making Tax Digital for Income Tax at a later date.

If you become a sole trader or a landlord after 6 April 2026

You do not need to start using Making Tax Digital for Income Tax until after you have submitted your first Self-Assessment tax return, but you can choose to voluntarily sign up at any time.

Who will need to use the service from 6 April 2026

You’ll need to use Making Tax Digital for Income Tax from 6 April 2026 if all of the following apply. You:

• are an individual registered for Self-Assessment

• get income from self-employment or property, or both, before 6 April 2025

• have a qualifying income of more than £50,000 in the 2024 to 2025 tax year

What will happen by 6 April 2026

1. You need to submit your Self-Assessment tax return for the 2024 to 2025 tax year by 31 January 2026.

2. We will review your return and check if your qualifying income is more than £50,000.

3. If it is, we will write to you and confirm that you must start using Making Tax Digital for Income Tax by 6 April 2026. If you have an agent, they can do this on your behalf.

4. You or your agent must find software that works with Making Tax Digital for Income Tax and authorize it.

5. You or your agent must sign up for Making Tax Digital for Income Tax.

Who will need to use the service from 6 April 2027

You’ll need to use Making Tax Digital for Income Tax from 6 April 2027 if all of the following apply. You:

• are an individual registered for Self-Assessment

• get income from self-employment or property, or both, before 6 April 2025

• have a qualifying income of more than £30,000 in the 2025 to 2026 tax year

What will happen by 6 April 2027

1. You need to submit your Self-Assessment tax return for the 2025 to 2026 tax year by 31 January 2027.

2. If your qualifying income was £50,000 or less, we will now review your return and check if it is more than £30,000.

3. If it is, we will write to you and confirm that you must start using Making Tax Digital for Income Tax by 6 April 2027. If you have an agent, they can do this on your behalf.

4. You or your agent must find software that works with Making Tax Digital for Income Tax and authorize it.

5. You or your agent must sign up for Making Tax Digital for Income Tax.

Who will not need to use Making Tax Digital for Income Tax

If you are exempt or choose not to sign up voluntarily during the testing period, you must continue to report your income and gains in a Self-Assessment tax return.

If you meet certain conditions, you may be automatically exempt from using Making Tax Digital for Income Tax. If you are automatically exempt, you do not need to apply for an exemption.

Who is automatically exempt

You’re automatically exempt and cannot sign up for Making Tax Digital if you are a: 

• trustee, including a charitable trustee or a trustee of non-registered pension schemes 

• person that does not have a National Insurance number — this only applies for a tax year where you do not have a National Insurance number on 31 January before the start of that tax year 

• personal representative of someone who has died 

• Lloyd’s member, in relation to your underwriting business 

• non-resident company 

When you need to apply for an exemption

If you are not automatically exempt, you may be able to apply for an exemption when the application process opens. You’ll need to show that it’s not reasonable or practical for you to use software to keep digital records and submit them.