Do I need Making Tax Digital?
Two questions, thirty seconds, and you'll know exactly when MTD becomes mandatory for you and what your first deadline is.
When does MTD hit you? A 30-second check
How the answer is worked out
MTD for Income Tax is phased in by gross qualifying income — your combined turnover from self-employment and property, before expenses, as shown on a past tax return:
- Over £50,000 (2024/25 return) → mandatory since 6 April 2026; first update due 7 August 2026.
- £30,000 – £50,000 (2025/26 return) → mandatory from 6 April 2027.
- £20,000 – £30,000 (2026/27 return) → mandatory from 6 April 2028.
- Under £20,000 → nothing announced yet.
Full timeline with every date on the deadlines page. If you're brand new to this, start with the plain-English explainer.
Frequently asked questions
Do I need MTD if I am employed and have a side business?
Your PAYE salary does not count. Only gross income from self-employment and property counts towards the threshold. A £40,000 salary plus £25,000 of self-employed turnover means you compare £25,000 against the thresholds — you would join in April 2028.
Does MTD apply to landlords?
Yes. Rental income counts in full — and it is gross rent, not profit after mortgage interest and repairs. See MTD for landlords.
I have a limited company — do I need MTD for Income Tax?
No. MTD for Income Tax covers sole traders and individual landlords. Limited companies are outside it (MTD for Corporation Tax has no confirmed start date). But if you also have personal rental income or a sole-trade side line above the threshold, that part brings you in.
What if my income is under £20,000?
You are not required to join yet and no date has been announced for you. You can join voluntarily, and the government has signalled it wants smaller incomes in eventually — worth staying informed.
Is the threshold based on profit or turnover?
Turnover — gross income before any expenses. This catches people out: £51,000 of rent with £20,000 of costs is over the £50,000 threshold even though the profit is £31,000.
Can I get an exemption from MTD?
A small number of people can — mainly those who are “digitally excluded” (no realistic way to use software due to age, disability, location or religion). You must apply to HMRC and be accepted; assume you are in unless HMRC says otherwise.
Get NippyTax when it launches
We are building the simplest possible way to do MTD quarterly updates — no accounting suite, no jargon. Join the waitlist and be first in when it launches.