Making Tax Digital for Income Tax is now being introduced in stages. The important figure is qualifying gross income from self-employment and property—not profit after expenses.
1. Who needs to use MTD?
HMRC states that those with qualifying income over £50,000 for 2024–25 should have started from 6 April 2026. Those over £30,000 for 2025–26 are due to start from 6 April 2027, and those over £20,000 for 2026–27 from 6 April 2028.
2. What qualifying income means
Qualifying income is the total gross income from self-employment and property sources before expenses. HMRC reviews submitted Self Assessment information to establish when the rules apply.
3. What you need in practice
You or your agent will need compatible software and a workable digital record-keeping routine.
- Choose compatible software
- Keep digital income and expense records
- Authorise the software and agent where relevant
- Send the required updates
- Keep the underlying evidence and reconciliations current
4. Do not wait for the deadline
Moving records in stages is safer than trying to repair a full year immediately before the first required update.
Official guidance
Tax and reporting rules can change. Check the current primary guidance before acting.
Check your likely MTD position
Use the free checker for initial guidance, then request a review if your income or record-keeping is more complex.
Use the MTD checker ↗This guide provides general information, not personal tax or employment advice. Your treatment and responsibilities depend on the complete facts and current rules.