MTD for Income Tax for sole traders.
Making Tax Digital for Income Tax already applies to sole traders and landlords whose qualifying income was over £50,000 in 2024–25. Next it reaches those over £30,000 in 2025–26, from 6 April 2027, then over £20,000 from 6 April 2028. Qualifying income is your turnover before expenses, plus any rent.
Recognised by HMRC · Ref B2D5MT
What counts towards the threshold
HMRC checks your Self Assessment return each year. Your qualifying income is your total self-employment and property income, before expenses: turnover, not profit.
| Qualifying income | In the tax year | MTD for Income Tax from |
|---|---|---|
| Over £50,000 | 2024–25 | 6 April 2026 |
| Over £30,000 | 2025–26 | 6 April 2027 |
| Over £20,000 | 2026–27 | 6 April 2028 |
| Example | Qualifying income | MTD for Income Tax |
|---|---|---|
| A plumber with £34,000 turnover and £20,000 profit in 2025–26 | £34,000 | From 6 April 2027 |
| An employee on £45,000 with a side business taking £12,000 | £12,000 (the salary doesn't count) | Not yet |
| A freelancer taking £18,000 who also lets a flat for £9,000 | £27,000 | From 6 April 2028, if it stays over £20,000 in 2026–27 |
Employment income taxed through PAYE, dividends, pensions and your share of a partnership's profit don't count. Partnerships themselves will join later; HMRC hasn't set a date.
What changes from Self Assessment
| Self Assessment | MTD for Income Tax | |
|---|---|---|
| Records | Kept any way you like | Digital records, in software or a linked spreadsheet |
| During the year | Nothing to send | A quarterly update for each business |
| End of the year | Tax return by 31 January | Tax return by 31 January, from your software |
| Paying tax | 31 January and 31 July | Unchanged |
Each quarterly update covers the year so far and is due on the 7th of the month after the quarter: 7 August, 7 November, 7 February and 7 May. You send one even if you had no income or costs.
Four steps before April 2027
Check your qualifying income
Add up your 2025–26 turnover and any rent, before expenses. Over £30,000 means you start on 6 April 2027.
Choose how you'll keep records
Link the spreadsheet you already use with our self-employment template, or record each income and expense in Clients Assistant.
Sign up and send updates
Sign up for MTD for Income Tax in your HMRC online account, connect it to Clients Assistant, and send your first update by 7 August 2027.
What it costs
| Plan | Price | Who it's for |
|---|---|---|
| Individual | £2.80 + VAT a month | One person: self-employment, UK property and foreign property |
| Family & Groups | £6.25 + VAT a month | Up to 10 people, for example joint owners who each have to file, with shared access for your accountant |
| Extended | £15 + VAT a month | 11 to 15 people |
Your first return is free on any plan, with no card needed. Prices are half price for your first year while the offer lasts, and annual billing saves two months.
Questions people ask
From 6 April 2026 if your qualifying income was over £50,000 in 2024–25, from 6 April 2027 if it was over £30,000 in 2025–26, and from 6 April 2028 if it was over £20,000 in 2026–27.
Turnover. Qualifying income is your self-employment and property income before expenses.
No. Employment income taxed through PAYE doesn't count towards qualifying income, and nor do dividends or pensions. Only your self-employment and property income does.
By 7 August 2027, covering 6 April to 5 July 2027. The next updates are due by 7 November, 7 February and 7 May.
No. You can keep it as long as it's digitally linked to HMRC through bridging software, which is what Clients Assistant's templates do. Or record your income and expenses in Clients Assistant instead.
You still send the update. HMRC expects one for every quarter, even with no income or expenses.
Yes, for example if you're digitally excluded. You apply to HMRC for an exemption, and you still file a Self Assessment return.
Not yet. HMRC hasn't set a date for partnerships, and a partner's share of partnership profit doesn't count towards their qualifying income.
Checked against GOV.UK on 15 October 2026. Sources: Check if you're eligible for Making Tax Digital for Income Tax; Work out your qualifying income; Send quarterly updates.
Related guides and products
Landlords
Thresholds, joint ownership and quarterly updates for rental income.
MTD Income Tax for landlords →MTD Income Tax
Templates, record keeping, demo videos and the full FAQ.
Clients Assistant MTD Income Tax →