Who Does Making Tax Digital Apply To? (2026 Update)
Making Tax Digital for Income Tax became mandatory for many self-employed people and landlords from 6 April 2026, replacing the traditional Self Assessment return for those affected. This guide from Filing Accounts UK explains exactly who’s in scope now, what changes, and what’s coming next, using only verified facts from official HMRC guidance.
At Filing Accounts, we help self-employed individuals and landlords get set up for Making Tax Digital. Official guidance is available at GOV.UK: Making Tax Digital for Income Tax.
Who Does MTD for Income Tax Apply To Right Now?
Since 6 April 2026, MTD for Income Tax is mandatory for self-employed individuals and landlords whose combined qualifying gross income from self-employment and/or property exceeded £50,000 in the 2024/25 tax year. This income figure is gross, before deducting expenses. If you’re in scope, you no longer file a traditional Self Assessment return for that income — you follow the new digital process instead.
Future Thresholds
| From | Qualifying Income Threshold |
|---|---|
| 6 April 2026 (current) | Over £50,000 (based on 2024/25 income) |
| 6 April 2027 | Over £30,000 (based on 2025/26 income) |
| 6 April 2028 | Over £20,000 (based on 2026/27 income) |
Each phase brings more taxpayers into scope. If you’re currently below £50,000 but above £30,000, start preparing now — you’ll be required to join from April 2027.
Who Isn’t Affected
- Limited companies — MTD for Income Tax applies to individuals, not companies. Corporation Tax is not yet included in any MTD mandate.
- Self-employed people and landlords below the current threshold — though it’s worth reviewing your position each year as thresholds fall.
- Employees with only PAYE income and no self-employment or property income.
- Those granted an exemption by HMRC, for reasons such as age, disability, or lack of reliable internet access — exemption applications must be approved by HMRC, not simply self-declared.
What MTD for Income Tax Actually Involves
- Digital record-keeping: income and expenses must be recorded throughout the year in HMRC-recognised software — a spreadsheet alone no longer qualifies unless bridged to compatible software.
- Quarterly updates: summary totals of income and expenses submitted to HMRC four times a year.
- Final declaration: replaces the old annual Self Assessment return, confirming and finalising the year’s figures by 31 January following the tax year.
- Payment dates unchanged: tax remains due by 31 January, with payments on account continuing as before — MTD changes reporting, not when you pay.
A soft-landing period applies for the first mandatory year, meaning no penalty points accrue for late quarterly updates while taxpayers adjust to the new process — though this doesn’t remove the underlying obligation to submit them.
Frequently Asked Questions
Does MTD apply to limited companies?
Not yet. MTD for Income Tax applies to individuals — self-employed people and landlords. Corporation Tax has no MTD mandate at present.
Will I still file a Self Assessment return under MTD?
The annual return is replaced by quarterly updates plus a final year-end declaration. Income not covered by MTD, such as dividends, is often still reported via traditional Self Assessment in parallel.
When does the threshold drop to £30,000?
From 6 April 2027, based on 2025/26 income. It drops again to £20,000 from 6 April 2028.
Can I get an exemption from MTD?
Limited exemptions exist for age, disability, religious belief, or lack of reliable internet access, but these require HMRC approval — they aren’t automatic.
Need Help Getting MTD-Ready? Talk to Filing Accounts UK
Whether you’re already in scope or approaching the 2027 threshold, getting digital record-keeping right early avoids a last-minute scramble. At Filing Accounts, we help self-employed individuals and landlords set up MTD-compliant software and manage quarterly submissions.
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