Does it apply to you?
Software and records
Signing up
Once you're in
Qualifying income is turnover, not profit
HMRC decides whether Making Tax Digital applies from your qualifying income: your total self-employment and property income before expenses, taken from your previous tax year's return. Your share of jointly owned property counts. Employment, pensions, dividends and partnership profits don't.
The threshold comes down in stages, with the first group starting on 6 April 2026. HMRC's guidance gives the date for each threshold.
Software before sign-up
HMRC asks you to have compatible software before you sign up. Its software finder lists products that have passed its recognition process, including bridging software that sends spreadsheet records to HMRC. You keep digital records of self-employment and property income and expenses only; other income still goes on your tax return.
Related
What else will you need?
- SA103SA103 self-employment pagesSA103 is the self-employment section of the Self Assessment return.
- SA105SA105 UK property pagesSA105 is the UK property section of the Self Assessment return.
- TemplateSole trader income and expenses trackerA sole trader income and expenses tracker records every sale and business cost through the tax year, so the self-employment pages of your tax return come straight from the totals.PDFExcel
- TemplateLandlord income and expenses trackerA landlord income and expenses tracker records every rent receipt and cost through the tax year, so the property pages of your tax return take minutes.Excel
- 64-864-8 agent authorisationForm 64-8 is the paper form you sign to let a paid agent, such as an accountant, deal with HMRC for you.
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
Is qualifying income my profit?
No. It's your self-employment and property income before expenses, from your previous year's Self Assessment return.
Can I keep using spreadsheets?
Yes, with bridging software that connects your spreadsheet to HMRC. HMRC's software finder lists recognised products.
Can my accountant sign me up?
Yes. An agent can sign you up, or you can do it yourself with the sign-in details you use for Self Assessment.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: Find out if and when you need to use Making Tax Digital for Income Tax (opens in a new tab) (HM Revenue & Customs); Work out your qualifying income for Making Tax Digital for Income Tax (opens in a new tab) (HM Revenue & Customs); Choose the right software for Making Tax Digital for Income Tax (opens in a new tab) (HM Revenue & Customs); Sign up for Making Tax Digital for Income Tax (opens in a new tab) (HM Revenue & Customs); Use Making Tax Digital for Income Tax: send quarterly updates (opens in a new tab) (HM Revenue & Customs).