Making Tax Digital for self-employed people: when might it matter?
A calm overview of Making Tax Digital for Income Tax, who it may affect, and how to check your situation.
What MTD for Income Tax is
Making Tax Digital (MTD) for Income Tax is a government programme that changes how some self-employed people and landlords keep and send their income and expense information to HMRC.
Rather than dealing with everything only at the end of the year, people within MTD generally need to keep digital records, send updates during the year using compatible software, and complete the required end-of-year steps.
This guide is a calm introduction, not official guidance. HMRC is the definitive source for MTD rules, thresholds, and timelines.
Who it may affect
MTD for Income Tax may apply to sole traders or landlords who are registered for Self Assessment and have self-employment or property income above the relevant threshold. It does not affect everyone, and it is being introduced in phases.
If your income from self-employment and property stays below the thresholds, MTD may not apply to you at this stage. The thresholds change over time as the programme expands.
The phased thresholds
HMRC is introducing MTD for Income Tax in stages. The table below shows the current planned timeline, based on HMRC guidance. These dates may be updated by HMRC, so it is worth checking the official source.
| Income year checked | Threshold | Possible MTD start date |
|---|---|---|
| 2024/25 | over £50,000 | 6 April 2026 |
| 2025/26 | over £30,000 | 6 April 2027 |
| 2026/27 | over £20,000 | 6 April 2028 |
Why income year and start date are different
The income year HMRC checks and the possible MTD start date are not the same. For example, the 2024/25 tax year (ending 5 April 2025) is used to check whether your income is above £50,000. If it is, your possible MTD start date would be 6 April 2026 — a year later.
This gap exists so there is time to prepare. Knowing which income year HMRC looks at can help you understand your timeline.
What turnover means here
For MTD thresholds, HMRC looks at your qualifying income or turnover from self-employment and property. Turnover means the money you bring in before expenses or tax. It is not your profit — it is the total income figure.
If your turnover is above the threshold in the relevant income year, you may need to prepare for MTD. If it is below, MTD may not apply to you yet. HMRC guidance explains exactly which income counts.
What to do next
If you think MTD may apply to you now or in a future year:
- Check the official HMRC guidance for the latest thresholds and dates
- Review your self-employment and property turnover for recent tax years
- Start looking at MTD-compatible software options if your start date is approaching
- Keep your records clean and digital — this makes any transition smoother
Even if MTD does not apply to you yet, building a digital record-keeping habit now makes things easier if it does in the future.
Use the SelfYear MTD checker
The SelfYear MTD checker is a simple tool that asks about your income and tax year and gives you a practical view of whether MTD may be relevant. It is not official advice, but it can help you understand your starting point.
Track this with your tax year
Create a free SelfYear profile to keep MTD information alongside your tax year overview, records, and practical next steps. Your profile helps you stay organised without paperwork piling up.
You may also find our registration and records guides helpful if you are still getting set up.
Official sources
This guide is a calm overview, not official advice. HMRC is the definitive source for MTD rules, thresholds, and timelines.