2024–2025 tax year
MAKING TAX DIGITAL
Making Tax Digital for Income Tax and VAT
If you are a sole trader or landlord, Making Tax Digital for Income Tax applies to you when your qualifying income goes over the threshold. That was £50,000 from 6 April 2026, and falls to £30,000 from April 2027 and £20,000 from April 2028. You will need compatible software, quarterly updates to HMRC and a tax return at the end of the year.
Does Making Tax Digital for Income Tax apply to me?
It applies if you are registered for Self Assessment, receive self-employment or property income (or both), and your qualifying income is above the threshold.
2025–2026 tax year
2026–2027 tax year
Qualifying income is your self-employment and property income before expenses, added together. Wages from employment, dividends and pensions do not count. Some people are exempt, for example if they are digitally excluded.
Source: GOV.UK — MTD eligibility and qualifying income. Checked 11 October 2026.
What will I need to do?
- Keep digital records of your income and expenses in compatible software.
- Send a quarterly update to HMRC from that software.
- Submit your tax return by 31 January after the end of the tax year.
Quarterly update deadlines are 7 August, 7 November, 7 February and 7 May. For the 2026 to 2027 tax year, HMRC will not give penalty points for late quarterly updates. From the following year, each missed deadline earns a point, and four points lead to a £200 penalty.
Sources: GOV.UK — quarterly updates · GOV.UK — penalties
AN EXAMPLE, EXPLAINED
Example: a landlord with a part-time business
This example is illustrative only.
Before
Amira earns £18,000 a year in rent and £16,000 from a part-time design business. She keeps her figures in a spreadsheet and files one tax return a year.
After
her qualifying income in 2025 to 2026 is £34,000, so Making Tax Digital applies to her from 6 April 2027. She needs to keep digital records and send quarterly updates for both her rental and design income.
How we help
we check her figures, set up compatible software, connect her bank feeds and send her quarterly updates. She checks the summary we send her each quarter and carries on running her business.
Making Tax Digital for VAT
VAT-registered businesses must, unless exempt, keep digital records and submit VAT returns using compatible software. This includes businesses that registered voluntarily. VAT deadlines have not changed.
Your Making Tax Digital checklist
- Work out your qualifying income for the relevant tax year.
- Check your start date.
- Choose compatible software.
- Open a separate bank account for your business or lettings, if you do not have one.
- Sign up for Making Tax Digital before your first quarterly update is due.
- Put the quarterly deadlines in your calendar, or ask us to manage them.
How SuperFiler can help
- A check of whether and when Making Tax Digital applies to you.
- Software set-up, including moving from spreadsheets.
- Quarterly updates prepared and sent for you.
- Your end-of-year tax return.
- Making Tax Digital for VAT returns.
YOUR MTD QUESTIONS
Frequently asked questions
Do I still need to file a tax return?
Yes. Quarterly updates do not replace your tax return, which is still due by 31 January.
Can I keep using spreadsheets?
Only with bridging software that connects your spreadsheet to HMRC. Many people find full bookkeeping software simpler.
What if I have a job as well?
Your wages do not count towards qualifying income. Only self-employment and property income before expenses count.
Does it apply to partnerships?
Not yet. The government will set a date for partnerships later.
Not sure where to start?
Tell us a little about your business and we will explain what you need, what it involves and what it will cost. There is no obligation.