Making Tax Digital for Income Tax: Who Needs It and When

Making Tax Digital for Income Tax started on 6 April 2026. If you are a sole trader or a landlord, whether it applies to you, and when, depends on one number: your qualifying income. This guide explains what that number is, how to work yours out, and what to do next.

Checked against HMRC’s guidance on GOV.UK on 06/10/2026.

Who has to use it

You need to use Making Tax Digital for Income Tax if all of these apply to you:

• you are a sole trader or a landlord registered for Self Assessment
• you get income from self-employment, property, or both
• your qualifying income is over the threshold for the tax year

Partnerships will join later. HMRC has said it will set out their timeline at a later date.

The three start dates

If you were over £50,000 in 2024 to 2025, you should already be using it. HMRC says you can still sign up if you have not done so yet.

What “qualifying income” means

This is the part most people get wrong. Qualifying income is your turnover, not your profit. It is your total income from self-employment and property before expenses, taken from the tax return for the earlier tax year.

HMRC’s own example: £25,000 of rental income plus £27,000 of self-employment income gives qualifying income of £52,000.

A trade example: an electrician invoices £34,000 in the 2025 to 2026 tax year and spends £12,000 on materials, a van and tools. Their profit is £22,000, but their qualifying income is £34,000. That is over £30,000, so they need to use Making Tax Digital from 6 April 2027.

What does not count

• wages from a job (PAYE)
• your share of profit from a partnership
• dividends, including dividends from your own limited company
• the State Pension and private pensions

So if you have a part-time job and some self-employed work on the side, only the self-employed turnover counts.

Will HMRC tell me?

HMRC checks your Self Assessment return each year. If your qualifying income is over the threshold, it writes to tell you to start by the beginning of the next tax year. If no letter arrives, it is still your responsibility to check. HMRC has an online checker on GOV.UK, linked below.

Can I be exempt?

Some people are. For example, you may be exempt if you are digitally excluded. If you are exempt you still send a Self Assessment tax return as usual. HMRC’s exemption guidance is linked below.

What you need to do

1. Work out your qualifying income from your last tax return: turnover from self-employment plus property income, before expenses.
2. Choose software that works with Making Tax Digital for Income Tax. You will use it to keep digital records, send a quarterly update every three months and submit your tax return.
3. Sign up with HMRC. To sign up you must be registered for Self Assessment and have sent a tax return in the last 2 years.
4. Start keeping digital records of every sale and every business expense.

You still send a normal Self Assessment return for the tax year before you start. Our guide to quarterly updates and their deadlines covers what happens after you sign up.

How Mint Books helps

Mint Books keeps the digital records Making Tax Digital asks for: every invoice you send, every receipt you snap with the AI scanner and every business mile you drive, filed under the same categories as your Self Assessment return. VAT returns go to HMRC from Mint Books today. For Income Tax, we are completing HMRC’s certification process. Your records are kept digitally and ready, and the Submit button appears in the app as soon as that is complete.

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Sources

• GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
• GOV.UK: Work out your qualifying income
• GOV.UK: Check if you can get an exemption

This guide is general information, not tax advice. If your situation is complicated, speak to an accountant.