Question 1

Who needs to register for Making Tax Digital?

Accepted Answer

From April 2026, sole traders and landlords with qualifying income over £50,000 must register for MTD for Income Tax. Those earning £30,000-£50,000 must register from April 2027, and those earning £20,000-£30,000 from April 2028.

Question 2

What is the MTD income threshold for 2026?

Accepted Answer

The MTD income threshold for April 2026 is £50,000 in qualifying income from self-employment and/or property. This includes your total gross income before expenses.

Question 3

Do I need MTD software to file my taxes?

Accepted Answer

Yes, once MTD for Income Tax applies to you, you must use HMRC-recognised software to keep digital records and submit quarterly updates. Spreadsheets alone are not sufficient.

Question 4

What happens if I miss the MTD deadline?

Accepted Answer

If you fail to comply with MTD requirements by your deadline, you may face penalties from HMRC. It's important to register and set up compatible software before your mandatory start date.

Question 5

Does rental income count towards the MTD threshold?

Accepted Answer

Yes, rental income is combined with self-employment income when calculating whether you meet the MTD threshold. Your total qualifying income from both sources is what determines your MTD start date.

Am I Eligible for Making Tax Digital?

What's your total income from self-employment each year (before expenses)?

Ready to get MTD-compliant?