MAKING TAX DIGITAL FOR INCOME TAX
From 6 April 2026, sole traders and landlords with qualifying income over £50,000 keep digital records, send HMRC a quarterly update, and file their tax return through software. The threshold falls to £30,000 in 2027 and £20,000 in 2028.
Who needs it, and from when?
| Qualifying income over | In tax year | Start from |
|---|---|---|
| £50,000 | 2024–25 | 6 April 2026 |
| £30,000 | 2025–26 | 6 April 2027 |
| £20,000 | 2026–27 | 6 April 2028 |
Qualifying income is your self-employment and property income added together, before expenses. Employment, pension and savings income do not count. Partnerships will join later. See who is eligible and who is exempt.
What changes
- Digital records of your business income and expenses, in software or a spreadsheet.
- A quarterly update to HMRC for each self-employment and property business. It is a summary of totals, not a tax return.
- Your tax return through software by 31 January after the tax year, with any other income and reliefs.
Quarterly update deadlines
Each update covers the tax year so far, from 6 April, and replaces the last one. You can correct earlier figures in the next update.
| Quarter | Update covers | Deadline |
|---|---|---|
| Q1 | 6 April to 5 July | 7 August |
| Q2 | 6 April to 5 October | 7 November |
| Q3 | 6 April to 5 January | 7 February |
| Q4 | 6 April to 5 April | 7 May |
If your accounts run 1 April to 31 March you can choose calendar update periods instead; the deadlines stay the same. Quarterly updates on GOV.UK.
One update per business
| Business type | What the update holds |
|---|---|
| Self-employment | Sales, other business income, and expenses by category (cost of goods, staff, travel, premises and so on) |
| UK property | Rents, lease premiums and other property income; property expenses and finance costs |
| Foreign property | The same, for each country you let property in |
How it works with DTax Filer
- Connect to HMRC once, by signing in with your Government Gateway details. DTax Filer never sees your password.
- Fill in the filing worksheet (Excel, LibreOffice or CSV) with your totals for the year so far, or upload the spreadsheet you already keep.
- Check the figures on screen, with what changed since your last update.
- Send the update, then see HMRC's estimate of your tax. After Q4, submit your tax return.
Questions
Do I need to use Making Tax Digital for Income Tax?
You do if you are a sole trader or landlord and your qualifying income is over the threshold: over £50,000 in 2024–25 means you start from 6 April 2026, over £30,000 in 2025–26 from 6 April 2027, and over £20,000 in 2026–27 from 6 April 2028. Some people are exempt.
What is qualifying income?
Your total income from self-employment and property before expenses, for example your sales or rents. Employment income, pensions and savings interest do not count towards it.
Does each quarterly update cover just three months?
No. Each update covers the tax year so far, from 6 April to the end of the update period, and replaces the one before. That means you can correct earlier figures without resending old updates.
When are quarterly updates due?
7 August, 7 November, 7 February and 7 May, for the periods ending 5 July, 5 October, 5 January and 5 April. The deadlines are the same if you use calendar update periods ending on the last day of the month.
Do I still file a tax return?
Yes. After the fourth update you submit your tax return through software by 31 January after the end of the tax year, adding any other income and claiming reliefs.
Can I keep my records in a spreadsheet?
Yes. Spreadsheets count as digital records as long as the totals reach HMRC through compatible software. With DTax Filer you upload the filing worksheet and we send the totals to HMRC.
I have a business and rental property. Is that one update?
No. You send a quarterly update for each self-employment and each property business you have, each with its own categories.