Tax returns are changing – with a new way to record and report your income and expenses. This is called Making Tax Digital (MTD) for Income Tax.
You’ll need to use MTD if all of the following apply:
- you’re a sole trader or a landlord registered for Self Assessment
- you get income from self-employment or property, or both
- your qualifying income is more than £20,000 — read more about what qualifying income is and what is included
When you need to start using MTD for Income Tax depends on your qualifying income within a tax year. If your qualifying income is over:
- £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026
- £30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027
- £20,000 for the 2026 to 2027 tax year, the government has set out plans to introduce legislation to lower the qualifying income threshold
Business partnerships will also need to use MTD for Income Tax in the future.
For further information please select the following link: Find out if and when you need to use Making Tax Digital for Income Tax - GOV.UK.