Making Tax Digital for Income Tax: who must use it, from when, and the quarterly dates
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Making Tax Digital for Income Tax began for some sole traders and landlords in April 2026. This guide explains who has to use it, the income thresholds and start dates, the quarterly update deadlines and the penalty rules.
Who this guide is for
This guide is general information for sole traders and landlords in the UK who file a Self Assessment return. It does not apply to people whose only income is from employment, dividends or pensions, or to partnerships, which will join later on a timeline still to be set. It is not advice for your own situation.
Making Tax Digital is run by HMRC and applies across England, Scotland, Wales and Northern Ireland. The figures below cover the 2026/27 tax year (6 April 2026 to 5 April 2027) and were checked on GOV.UK on 13 October 2026.
What it is
Instead of one yearly return, people in the scheme keep digital records of their self-employment and property income and expenses, send HMRC short updates during the year, and then finish with their tax return. GOV.UK says each update contains totals for each income and expense category. Individual receipts or invoices are not sent.
Who must use it, and from when
You must use it if you are registered for Self Assessment, have self-employment or property income, and your qualifying income is above the threshold for the relevant tax year. GOV.UK sets out three steps:
- Qualifying income over £50,000 in 2024/25: must use it from 6 April 2026.
- Qualifying income over £30,000 in 2025/26: must use it from 6 April 2027.
- Qualifying income over £20,000 in 2026/27: must use it from 6 April 2028.
GOV.UK says HMRC checks your Self Assessment return for the earlier year and writes to you if you are above the threshold. People who are exempt, for example because of digital exclusion, do not use it but still file a Self Assessment return.
What counts as qualifying income
GOV.UK describes qualifying income as your total self-employment and property income before expenses, also called turnover. Your share of jointly owned property income counts. Employment income, dividends, State Pension and private pensions do not count. Because expenses are not taken off, someone with a smaller profit can still be over a threshold.
Quarterly update dates
GOV.UK gives these deadlines for the standard update periods, which follow the tax year. People can also choose calendar periods ending a few days earlier, with the same deadlines.
- 6 April to 5 July: send by 7 August
- 6 April to 5 October: send by 7 November
- 6 April to 5 January: send by 7 February
- 6 April to 5 April: send by 7 May
Each update covers the year so far, and one must be sent even if there was no income or expense in that period. The tax return still has to be filed after the final update. For anyone already in the scheme, the update for 6 April to 5 October 2026 is due by 7 November 2026.
Penalties
GOV.UK says no penalty points are given for late quarterly updates in the 2026/27 tax year, although late tax returns still can earn points. From 2027/28, each missed deadline earns one point, and reaching 4 points leads to a £200 penalty. GOV.UK says points can expire after 24 months, or be cleared by meeting the deadlines for 12 months once the threshold is reached.
Where to get help
HMRC has free guidance on GOV.UK, including the sign-up and penalty pages linked below. Many people use software that works with Making Tax Digital, but the guidance does not require any particular product, and this guide does not rank or recommend any.
Check before you act
Dates, thresholds and penalty rules can change, so it can be worth confirming them on the official pages linked below, or in the letter HMRC sends, before relying on this summary.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
