Does Making Tax Digital apply to you?
Finance Act 2021, Making Tax Digital for Income Tax Self Assessment (MTD ITSA)
When this applies
Sole traders and landlords with qualifying income over £50,000 must use Making Tax Digital-compatible software and file quarterly updates from 6 April 2026. The threshold drops to £30,000 in April 2027. Check whether your income exceeds the current threshold.
When it does not apply
MTD for Income Tax applies to sole traders and landlords filing Self Assessment, not to limited companies. Corporation Tax MTD is planned separately.
What is at stake
Penalties for late or incorrect quarterly submissions. HMRC may issue penalty points under the new penalty regime.
What to do
If your qualifying income exceeds £50,000, you must use MTD-compatible software from 6 April 2026 and file quarterly updates to HMRC. The threshold drops to £30,000 from April 2027.
Check all 27 regulations for your business
This is one of 27 checks getsorted runs. Answer around 12 questions and see your full compliance picture in three minutes. Free, no account.
Check your business →Reviewed: 2026-06-25 · Source: official guidance