Making Tax Digital for Income Tax changes how sole traders and landlords report to HMRC. Instead of one return a year, you keep digital records, send a short update every quarter, and then the tax return at the end of the year, all through software that works with Making Tax Digital.
Who has to use it, and from when
It depends on your qualifying income, and arrives in three steps:
| Qualifying income over | On your return for | You use it from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your total income from self-employment and property before expenses, also known as turnover, taken from the Self Assessment return you sent for the tax year shown. Other income does not count, such as wages taxed through PAYE, a share of a partnership’s profit, dividends, and pensions. Some people can apply for an exemption.
Quarterly updates
Each update covers the tax year so far, from 6 April, and sends totals by category rather than individual receipts:
| Period | Send it by |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May, in the following tax year |
You can choose calendar quarters instead, from 1 April, with the same deadlines. In the 2026 to 2027 tax year, a late update earns no penalty point. After that, each missed deadline earns one, and 4 points bring a £200 penalty.
The tax return
At the end of the tax year you still send a tax return, through your Making Tax Digital software, by 31 January following the end of the tax year.
For the other dates in the year, see our guide to UK tax year dates and deadlines.