SALF910 | Self Assessment: the legal framework: Making Tax Digital: Overview and Legislation: Overview

Making Tax Digital (MTD) for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. Regulations came into force on 1 April 2026.

Relevant individuals and partnerships(‘relevant persons’) will need to use software to:

• create, store and correct digital records of self-employment and property income and expenses

• send quarterly updates to HMRC

• submit their tax return (required by s8(1)(a) TMA 1970) by 31 January the following year

A ‘relevant person’ is a person who is carrying on or has carried on a relevant activity (see SALF930).

MTD for Income Tax is being introduced in stages and applies if the persons qualifying income exceeds the qualifying amount.

The qualifying amounts are:

• £50,000 for the tax year 2024-25;

• £30,000 for the tax year 2025-26;

• £20,000 for the tax year 2026-27 and any subsequent tax year

Unless exemption applies, those with qualifying income over £50,000 in their 2024-25 tax return are obliged to use MTD from 6 April 2026, if over £30,000 from 6 April 2027 and if over £20,000 from 6 April 2028 (if a notice to file was issued at the usual time). See SALF1020 for digital start dates.

For operational and customer guidance about MTD for Income Tax see Making Tax Digital for Income Tax - GOV.UK.