Since 6 April 2026, Making Tax Digital for Income Tax has been live for the first group of UK sole traders and landlords. If you file Self Assessment and earn money from self employment or property, it is worth checking now whether you are already in, or when your turn comes. Here is the short version, with every fact taken from GOV.UK.
Who has to use it
GOV.UK says you need to use Making Tax Digital for Income Tax if all of these apply: you are a sole trader or landlord registered for Self Assessment, you get income from self employment or property (or both), and your qualifying income is over the threshold for the tax year.
Your start date depends on your qualifying income:
Over £50,000 for 2024 to 2025: you should have started from 6 April 2026. GOV.UK says you can still sign up if you have not done so yet.
Over £30,000 for 2025 to 2026: you will need to use it from 6 April 2027.
Over £20,000 for 2026 to 2027: you will need to use it from 6 April 2028.
Partnerships will join later, on a timeline HMRC has not set yet.
What counts as qualifying income
Qualifying income is your total income from self employment and property before expenses, in other words your turnover, based on the tax return for the earlier year. GOV.UK gives the example of £25,000 rental income plus £27,000 self employment income, which makes £52,000 of qualifying income.
Some income does not count at all, including PAYE wages, your share of profit from a partnership as an individual partner, dividends, the State Pension and private pensions. So someone with a salary and a small side business can be under the threshold even when their total income is high.
HMRC reviews your return and writes to you if you are over the threshold. GOV.UK is clear that if no letter arrives, it is still your responsibility to check.
What changes day to day
Once you are in, you keep digital records of your self employment and property income and expenses, and you send a quarterly update every 3 months for each business, using compatible software. A quarterly update is a summary of totals, not a tax return, and HMRC does not see your individual receipts or invoices.
For standard update periods the deadlines are 7 August, 7 November, 7 February and 7 May. Each update covers the tax year so far, from 6 April. If nothing happened in a quarter, you still send the update.
There is some breathing room in year one. GOV.UK says HMRC will not apply penalty points for late quarterly updates during the 2026 to 2027 tax year. Penalty points still apply to late tax returns, and after 2026 to 2027 each late update earns a point, with a £200 penalty once you reach 4 points.
Can you still use a spreadsheet?
Yes, but a spreadsheet cannot send anything to HMRC on its own. GOV.UK describes bridging software that connects to records kept in spreadsheets and makes the submissions for you. Use the GOV.UK software finder to check which recognised products fit your income sources and accounting period. HMRC does not recommend any product.
Check your own start date
If you are not sure where you stand, I put together a free 2 page PDF you can work through: the Free MTD Quick Check. You add up your qualifying income, answer three yes or no questions and see whether Making Tax Digital for Income Tax applies to you, and from which date.
If you already know you are in and want to keep your records in a spreadsheet, the £14 MTD Ready Kit has an .xlsx tracker workbook in the HMRC categories, an 11 page guide and a 1 page checklist.
Sources (GOV.UK, checked 25 October 2026)
General information from GOV.UK, not tax advice. Rules can change, so check GOV.UK or speak to a qualified adviser about your own situation. Independent, not affiliated with HMRC.