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 have had to use Making Tax Digital-compatible software and file quarterly updates since 6 April 2026. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Check your qualifying income, which is gross self-employment and property income before expenses. HMRC has been signing up mandated taxpayers automatically since September 2026, so you may be enrolled without having registered yourself.
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 submissions. The points-based penalty regime for late quarterly updates starts from 6 April 2027, so 2026/27 is a grace year for quarterly updates only. Your final declaration for 2026/27, due 31 January 2028, is penalised as normal.
What to do
If your qualifying income is over £50,000, you should already be using MTD-compatible software and filing quarterly updates, mandatory since 6 April 2026. The threshold drops to £30,000 from April 2027 and to £20,000 from April 2028.
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Check your business →Reviewed: 2026-09-13 · Source: official guidance