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What is Making Tax Digital for Income Tax, and does it apply to me?
Short answer
Making Tax Digital (MTD) for Income Tax means sole traders and landlords keep digital records and send HMRC quarterly updates using compatible software. It started on 6 April 2026 for qualifying income over £50,000. It extends to income over £30,000 from April 2027 and over £20,000 from April 2028. Partnerships will follow later.
Does it apply to me?
| Qualifying income (self-employment plus property) | Tax year HMRC checks | You start |
|---|---|---|
| Over £50,000 | 2024 to 2025 | 6 April 2026 |
| Over £30,000 | 2025 to 2026 | 6 April 2027 |
| Over £20,000 | 2026 to 2027 | 6 April 2028 |
Qualifying income is your gross self-employment and property income, before expenses. Limited companies don't use MTD for Income Tax; they're already in MTD for VAT if VAT registered. Some people are exempt, for example if digitally excluded.
Quarterly deadlines
| Period | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
You still submit a final return by 31 January. HMRC says it won't give penalty points for late quarterly updates in the 2026 to 2027 tax year.
How AI helps
Bookkeeping apps use AI to read receipts and match bank transactions, which makes quarterly updates quicker. Check the categories before you submit. See can AI do my bookkeeping? and is Making Tax Digital software free?
Related questions
Is Making Tax Digital compulsory?
Yes, once your income is over the threshold, unless you're exempt.
Can ChatGPT submit my quarterly updates?
No. Only HMRC-recognised software can submit. See can ChatGPT do my tax return?
Is a Self Assessment the same as a tax return?
Yes. Self Assessment is HMRC's system, and the Self Assessment tax return is the yearly form you file under it. Under Making Tax Digital you also send quarterly updates through your software, then file the yearly tax return through that software by 31 January.
Sources
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
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