Making Tax Digital – important deadline dates

Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000 you need to be prepared for digital record keeping including making quarterly updates and for a new penalty system.

You will need to use MTD for IT if all of the following apply:

  • You are a sole trader or landlord registered for self-assessment.
  • You receive income from self-employment, property or both.

When you must start using MTD for IT:

  • If your qualifying income is over £50,000 in the 2024–2025 tax year:
    • You must start using MTD for IT from 6 April 2026
  • If your qualifying income is over £30,000 in the 2025–2026 tax year:
    • You must start using MTD for IT from 6 April 2027
  • If your qualifying income is over £20,000 in the 2026–2027 tax year:
    • The government has confirmed that MTD for IT will apply to sole traders and landlords with income over £20,000 starting in April 2028 but further details are awaited.

You are currently exempt from MTD for IT if:

  • You meet specific limited conditions that automatically exempt you from the service (e.g., for reasons such as age, disability, or location).
  • You have applied for an exemption, and it has been approved by HMRC.
  • Your qualifying income is £20,000 or less in a tax year.

If you do not use MTD for IT, you must continue to report your income and gains in a self-assessment tax return if required.