UK · Self Assessment · tax year 2026/27
Do you need Making Tax Digital for Income Tax, and from when?
Sole traders and landlords with more than £50,000 of self-employment and property turnover have had to use MTD since 6 April 2026. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028. Enter your figures to get your start date, your deadlines and what happens if you are late.
Independent tool, not affiliated with HMRC. It applies the rules published on GOV.UK to the figures you enter. It is not tax advice. HMRC’s letter and your HMRC online account are the only authoritative answer; if in doubt, ask HMRC or a tax adviser.
The three start dates
HMRC checks the Self Assessment return you filed for an earlier tax year. If qualifying income on it is more than the threshold, you must use MTD from the following 6 April. HMRC writes to people it identifies, but the letter is not a condition.
| Tax return HMRC checks | Qualifying income | MTD applies from |
|---|---|---|
| 2024 to 2025 | more than £50,000 | 6 April 2026 |
| 2025 to 2026 | more than £30,000 | 6 April 2027 |
| 2026 to 2027 | more than £20,000 | 6 April 2028 |
What changes when you join
MTD for Income Tax is a new way of doing Self Assessment, not a new tax. According to GOV.UK you still send one tax return a year and pay by 31 January. On top of that you must:
- use compatible software — HMRC does not provide any; spreadsheets are allowed if linked to “bridging” software (how to choose);
- keep digital records of each self-employment and property income and expense: amount, date and category;
- send a quarterly update for each business by 7 August, 7 November, 7 February and 7 May — cumulative totals, not tax returns, and required even if nothing happened (your calendar);
- submit the tax return through the software by 31 January, after adding other income (savings, dividends, partnership share) and claiming reliefs;
- work under new penalties: points for late submissions, and late payment penalties that grow with the delay (calculator).
Digital records must be kept for at least 5 years after the return deadline: for 2026 to 2027, until at least 31 January 2033.
Before you trust the result
- You must be registered for Self Assessment and have filed a return in the last 2 years to sign up.
- If you were not UK resident in 2024 to 2025, only UK property income and self-employment income declared on your UK return count, and the SA109 exemption may apply — see exemptions.
- Transition profits from basis period reform, qualifying care relief and income from REITs or PAIFs are left out. Landlords: see jointly owned and furnished holiday lets.
- HMRC offers its own checking tool. If you disagree with HMRC’s decision, contact Self Assessment general enquiries.
Questions people ask
Is MTD qualifying income gross or net?
Gross. GOV.UK defines qualifying income as your total self-employment and property income before expenses (turnover). A sole trader with £60,000 of sales and £35,000 of costs has £60,000 of qualifying income, not £25,000. See qualifying income explained.
What is the MTD for Income Tax threshold?
More than £50,000 of qualifying income on your 2024 to 2025 return means MTD from 6 April 2026; more than £30,000 on your 2025 to 2026 return means 6 April 2027; more than £20,000 on your 2026 to 2027 return means 6 April 2028. Exactly £50,000 is not “more than” £50,000. At £20,000 or less you are automatically exempt.
I am employed and also rent out a flat. Does my salary count?
No. Employment (PAYE) income, dividends, pensions and a partnership share do not count. Only self-employment and property income is added up. If your rent alone is over the threshold, you still need MTD, and your salary is added by HMRC to your tax return at the end of the year.
I have not received a letter from HMRC. Am I off the hook?
No. GOV.UK says that if you did not receive a letter, it is still your responsibility to check whether and when you need MTD and to sign up in time.
Does MTD replace my Self Assessment tax return?
No. You still send one tax return a year and pay by 31 January after the end of the tax year. What changes: you keep digital records, send four quarterly updates through compatible software, and submit the return through that software. For the tax year before you start, you file the usual way.
Are there penalties for late quarterly updates in the first year?
Not for 2026 to 2027: HMRC will not give penalty points for late quarterly updates in that tax year, but you must still send them before you can submit your tax return, and a late return does score a point. From 2027 to 2028, each missed deadline scores a point and 4 points mean a £200 penalty. Penalty calculator.
Can I stop using MTD if my income falls?
Yes, but not straight away. You can opt out once your qualifying income has been below the relevant threshold for 3 tax years in a row (or if you amend last year’s return and it drops below). GOV.UK’s example: someone who joined in April 2026 with income below £20,000 on their 2026 to 2027 and 2027 to 2028 returns and their 2028 to 2029 fourth quarterly update could opt out for 2029 to 2030.
Do partnerships have to use MTD for Income Tax?
Not yet. GOV.UK says partnerships will need to use it in future, on a timeline still to be announced. A share of partnership profit does not count towards your own qualifying income.
Official sources
- Find out if and when you need to use Making Tax Digital for Income Tax — GOV.UK, last updated 26 March 2026, read 29 September 2026.
- Work out your qualifying income for Making Tax Digital for Income Tax — GOV.UK, last updated 11 September 2026, read 29 September 2026.
- Find out if you can get an exemption from Making Tax Digital for Income Tax — GOV.UK, last updated 28 May 2026, read 29 September 2026.
- Use Making Tax Digital for Income Tax: Before you use this guide — GOV.UK, last updated 2 April 2026, read 29 September 2026.
- Use Making Tax Digital for Income Tax: Send quarterly updates — GOV.UK, last updated 19 May 2026, read 29 September 2026.
- Penalties for Making Tax Digital for Income Tax — GOV.UK, last updated 30 March 2026, read 29 September 2026.
- Use Making Tax Digital for Income Tax: If your circumstances change — GOV.UK, last updated 7 September 2026, read 29 September 2026.
Rules checked against GOV.UK on .