If you receive qualifying income from self-employment and / or property, you will be legally required to use Making Tax Digital for Income Tax.
What is MTD: Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC.
Who needs to sign up: You will need to use Making Tax Digital for Income Tax if all of the following apply: You are an individual registered for self-assessment. You get income from self-employment or property, or both. Have qualifying income of more than £20,000
When does it come into place: From 6 April 2026, some sole traders and landlords must use it, based on their total annual income from self-employment and property.
April 2026, if your qualifying income is over £50,000 in the 2024 to 2025 tax year. April 2027, if your qualifying income is over £30,000 in the 2025 to 2026 tax year. April 2028, if your qualifying income is over £20,000 in the 2026 to 2027 tax year.
What do you need to do: You, or your agent if you have one, will need to use software that works with MTD for income tax. The software will need to be able to create, store and correct digital records of your self-employment and property income and expenses and send your quarterly updates to HMRC and submit your tax return by 31 January the following year.
