Making Tax Digital for Income Tax changes how some people with self-employment or property income keep records and send updates. It is not simply a reminder to file a tax return early. The correct start date depends on qualifying income and the relevant comparison tax year.
What qualifying income means
For this purpose, qualifying income is the total gross income from self-employment and property before expenses and tax. It is not the profit after costs. Check the current official guidance for circumstances and exclusions that may affect a particular person.
Published phased start dates
| Comparison tax year | Qualifying income | Start date | Status at this resource’s evidence date |
|---|---|---|---|
| 2024–25 | More than £50,000 | 6 April 2026 | Already started |
| 2025–26 | More than £30,000 | 6 April 2027 | Planned phase |
| 2026–27 | More than £20,000 | 6 April 2028 | Planned phase |
What to organise now
Keep a complete record of business income and allowable expenditure. Separate business and personal transactions as far as practicable, retain supporting evidence and identify income that belongs to a different business, property or tax treatment. Decide who will maintain the records and who will review a discrepancy before an update is sent.
A practical first check
For example, a self-employed consultant should compare the relevant prior-year gross self-employment and property income with the published threshold, then check current exclusions and start-date guidance before assuming an obligation. This is a planning prompt, not a tax-status decision.
Keep annual work in view
Updates do not remove the need to check the overall position. Keep personal income, reliefs, adjustments and other tax-return information separate from day-to-day business records. Ask for advice where income types, property, partnerships, joint businesses or exclusions make the position unclear.
Put the routine in place
Check when the rules apply, use compatible software where required, keep digital records and agree who will prepare and review updates. Updates sit alongside the annual work rather than replacing it.
Related FoxSums resources
- Business Expenses for Sole Traders: What to Check Before Claiming
- Self Assessment Preparation Checklist
- Bookkeeping for Small Businesses: Why It Matters
Next step
Confirm whether and when the rules apply, then organise the records and software review needed before the start date.
Important
General information only. Check the facts and current official guidance for the business’s circumstances.
Sources and review
- Evidence check date: 3 November 2026.
- GOV.UK - Using Making Tax Digital for Income Tax for the first time
- GOV.UK - Understanding Making Tax Digital for Income Tax