Do I need to use Making Tax Digital?

Making Tax Digital for Income Tax is phased in by income. What counts is your qualifying income — gross self-employment turnover plus gross rents, combined. It is the gross figure, not your profit, so you can be in scope even after expenses or a mortgage leave little behind.

It applies from April 2026 for qualifying income over £50,000, from April 2027 over £30,000, and from April 2028 over £20,000. Below £20,000 you are not yet mandated, but you can join voluntarily.

If you are in, the once-a-year Self Assessment is replaced by four quarterly updates and a year-end Final Declaration, filed through compatible software.

Frequently asked questions

Is the MTD threshold based on profit or turnover?

It is your gross income before expenses, from self-employment and property added together — not your profit.

What if my income is under £20,000?

You are not mandated yet, but you can join Making Tax Digital voluntarily, and you continue filing Self Assessment until the rules change.

Do I count one rental or all my income?

All qualifying self-employment turnover and gross rents combined, on your individual share of any jointly-owned property.

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