Making Tax Digital for Income Tax
Making Tax Digital for Income Tax is a new way for sole traders and landlords to report income and expenses to HMRC.
From 6 April 2026, some sole traders and landlords must use it, based on their total annual income from self-employment and property.
You, or your agent if you have one, will need to use compatible software like Calceum to:
- create, store and correct digital records of your self-employment and property income and expenses
- send your quarterly updates to HMRC
- submit your tax return by 31 January the following year
Who will need to use it
Sole traders and landlords will need to use Making Tax Digital for Income Tax, unless they are exempt, if the following apply. They:
- are registered for Self Assessment
- get income from self-employment or property, or both
- have qualifying income of more than £20,000
Qualifying income is the total gross income (before deducting expenses or taxes) from self-employment and property in a tax year.
All other sources of income reported through Self Assessment do not count towards your qualifying income, such as income from:
- employment (PAYE)
- your share of profit from a partnership as an individual partner
- dividends (including those from your own company)
- a State Pension
- private pensions
When you will need to use it
When you need to start using Making Tax Digital for Income Tax depends on your qualifying income for a tax year.
| Qualifying Income | Tax Year | Mandatory From |
|---|---|---|
| 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 |
Use HMRC’s tool to check if and when you need to sign up.
If you want to sign up early
Sole traders, landlords, and their agents can sign up early to test the service before they’re required to use Making Tax Digital for Income Tax.
Signing up early also means you can get dedicated support from HMRC.
HMRC will not issue penalties for missing quarterly update deadlines during the testing phase. Read more on new penalties and when they apply.
What to do next
Learn more about what’s involved with Making Tax Digital:
- Signing up - how to sign up and authorise Calceum
- Creating digital records - how to create and store digital records of your income and expenses
- Sending quarterly updates - how and when to send quarterly updates to HMRC
- Submitting your tax return - how to complete and submit your tax return
For step-by-step guidance from HMRC, see their guides for sole traders and landlords or agents.
Source:
HMRC - Use Making Tax Digital for Income Tax