Do I Need Making Tax Digital?
Written by Tom Ellis · Senior Trades Editor
Quick Answer
You need Making Tax Digital if your self-employment and property turnover combined was over £30,000 on your 2025–26 tax return (due 31 January 2027). The test is on turnover — income before expenses — not profit. If that figure is over £30,000, you join from 6 April 2027.
The income test: turnover, not profit
HMRC tests your qualifying income — the combined total of your self-employment turnover and any property income, before any expenses are deducted. It is not your profit, and it is not what landed in your bank account after CIS deductions or other costs.
A builder who invoiced £40,000 and spent £18,000 on materials, leaving £22,000 profit, has qualifying income of £40,000. They are in Making Tax Digital from April 2027. The profit figure is irrelevant for this test.
For CIS subcontractors, it is the gross amount on your payment statements — before the contractor deducts the 20% or 30% — that counts. So a subcontractor with £36,000 of gross CIS work is in from April 2027, even though only £28,800 reached their bank account after deductions.
If you have both self-employment and rental income, the two are added together. A plumber with £24,000 self-employment turnover and a rental property bringing in £8,000 has £32,000 qualifying income and joins from April 2027. See the full MTD £30,000 threshold guide for more scenarios.
The three joining dates
Making Tax Digital for Income Tax is rolling out in three waves. Which wave you join depends on the qualifying income shown on your Self Assessment returns.
| Qualifying income | Measured on | Join MTD |
|---|---|---|
| Over £50,000 | 2024–25 return | 6 April 2026 (already in) |
| Over £30,000 | 2025–26 return (due 31 Jan 2027) | 6 April 2027 |
| Over £20,000 | 2026–27 return | 6 April 2028 |
The £50,000 group joined in April 2026 and are already keeping digital records and sending quarterly updates. If your 2024–25 return showed qualifying income over £50,000, you should already be in MTD. If you're unsure, check with HMRC or your accountant now.
Your situation
Not every situation is straightforward. Use the guides below for your specific circumstances.
My turnover is under £30,000
What the threshold means and what to do if you're close to the line.
I'm a CIS subcontractor
How gross CIS pay counts and where deductions go.
I'm employed and self-employed
PAYE wages don't count — only self-employment and property income does.
I'm a landlord and tradesperson
How rental income and self-employment income combine for the test.
I'm in a partnership
Partnerships are exempt for now — but partners with other self-employment may still be in.
What if I'm not sure?
The clearest way to check is to look at the self-employment income on your 2025–26 Self Assessment return — the one due by 31 January 2027. If the total turnover line is over £30,000, you are in. If it is under £30,000 but you are growing, check the £20,000 band for April 2028.
If you file through an accountant, ask them to flag your qualifying income when they prepare your return. HMRC is also writing to people with qualifying income over £30,000 in phases from autumn 2026 into early 2027, but it says checking is your responsibility — a letter not arriving does not mean you are exempt.
What happens once you're in
From your start date (6 April 2027 for the £30,000 group) you must:
- Keep digital records of every income and expense item in MTD-compatible software.
- Send four quarterly updates a year to HMRC — summaries of your totals, not receipts or invoices.
- File your tax return (final declaration) by 31 January as now, through MTD software.
No tax is paid with the quarterly updates. Payment dates stay 31 January and 31 July. For the full picture of what changes — and what stays the same — see the Making Tax Digital guide for tradespeople.
Check if you're in MTD
Put in your turnover and the free checker tells you which date applies to you and what to do next.
Check now →