Making Tax Digital for sole traders
Who has to use Making Tax Digital for Income Tax and from when, what “qualifying income” means, and what changes about how you report your income.
Checked against official guidance on 5 November 2026.
Who has to use it, and from when
| From | If your qualifying income was over | In the tax year |
|---|---|---|
| 6 April 2026 | £50,000 | 2024 to 2025 |
| 6 April 2027 | £30,000 | 2025 to 2026 |
| 6 April 2028 | £20,000 | 2026 to 2027 |
It applies to sole traders and landlords registered for Self Assessment. HMRC checks your return each year and writes to you if you’re over the threshold, but it’s still your responsibility to check, even if no letter arrives.
“Qualifying income” means turnover, not profit
Qualifying income is your income from self-employment and property before expenses, in other words your turnover. Income from a job (PAYE) doesn’t count. So a photographer who invoiced £34,000 in 2025/26 but made £18,000 profit is over the £30,000 threshold, and needs Making Tax Digital from 6 April 2027.
What changes
- You keep your business records digitally, in software that works with Making Tax Digital.
- You send HMRC a quarterly update: totals for each type of income and expense, not individual invoices or receipts.
- Each update covers the tax year so far, from 6 April to the end of that quarter.
- You send an update even for a quarter with no income or expenses.
- You still submit a tax return after the end of the year.
The quarterly deadlines
| Update covers | Send it by |
|---|---|
| 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 (the following tax year) |
How to get ready
- Work out your turnover for 2025/26 now, to see whether you’ll be in from April 2027.
- Choose software that works with Making Tax Digital for Income Tax, or ask your accountant what they use.
- Get into the habit of recording income and expenses as they happen, by category, rather than in one go in January.
Freelance Ops isn’t Making Tax Digital software and doesn’t send anything to HMRC. What it does is keep your invoices and expenses organised and categorised through the year, so the totals your MTD software or accountant needs are already there.
Quick answers
When do I have to start using Making Tax Digital?
From 6 April 2026 if your qualifying income in 2024/25 was over £50,000; from 6 April 2027 if it was over £30,000 in 2025/26; and from 6 April 2028 if it was over £20,000 in 2026/27.
Is the threshold based on profit or turnover?
Turnover. Qualifying income is your self-employment and property income before expenses. Employment (PAYE) income doesn’t count towards it.
What are the quarterly update deadlines?
7 August, 7 November, 7 February and 7 May. Each update covers the tax year so far, and you send one even if a quarter had no income or expenses.
Do I still need to do a tax return?
Yes. The quarterly updates don’t replace the end-of-year tax return.