Am I Affected by Making Tax Digital? (2026 Eligibility Checker)

Making Tax Digital for Income Tax (MTD for IT) is the biggest change to how self-employed people and landlords report their income in a generation. But not everyone is affected straight away — it is being phased in by income level over three years.

This guide is a plain-English checker: answer three quick questions and you will know exactly whether you are affected, when your start date is, and what you will need to do.

The quick answer

You are affected by Making Tax Digital for Income Tax if you are self-employed, a landlord, or both, and your gross income from those sources is above the threshold for your start date:

If your income is below £20,000, you are not currently required to join — though you can choose to sign up voluntarily.

The 3-question checker

Question 1: What kind of income do you have?

MTD for Income Tax applies to income from self-employment (sole traders, freelancers, contractors) and property/rental income. If you only have employment (PAYE) income, or only income from dividends, savings or a pension, MTD for Income Tax does not apply to you.

Question 2: What is your gross income?

This is the part people get wrong. The threshold is based on your gross income — your total turnover or rental income before you take off any expenses. Not your profit.

If you have both self-employment and property income, you add them together. For example:

• £35,000 self-employment turnover + £20,000 rental income = £55,000 gross → over the £50,000 threshold → affected from April 2026.

Question 3: When does your threshold kick in?

• Over £50,000? You start from April 2026.
• Between £30,000 and £50,000? You start from April 2027.
• Between £20,000 and £30,000? You start from April 2028.
• Under £20,000? Not required yet.

What you will have to do if you are affected

Once you are in MTD for Income Tax, Self Assessment as you know it changes. Instead of one tax return a year, you will:

1. Keep digital records of your business income and expenses (paper receipts in a shoebox no longer count).
2. Send a quarterly update to HMRC — four times a year — summarising your income and expenses. The deadlines are 7 August, 7 November, 7 February and 7 May.
3. Submit a final declaration once a year to confirm your figures and finalise your tax.

All of this has to be done through MTD-compatible software — you cannot type it straight into the HMRC website like the old Self Assessment.

Don't forget your final "old-style" tax return

Even if you are mandated into MTD from April 2026, you still need to file your final normal Self Assessment return for the 2025/26 tax year by 31 January 2027, before quarterly reporting takes over. Missing this is an easy and expensive mistake.

What if I'm under the threshold?

You are not required to join, but you can sign up voluntarily. Many people choose to, because keeping digital records through the year is far less stressful than a once-a-year scramble — and it means you always know what tax you owe.

What you need to get ready

The single most important thing is a habit of keeping digital records as you go — every invoice, receipt and business journey — so that when a quarterly deadline arrives, your figures are already there.

That is exactly what Pivitax is built for. Snap a photo of a receipt and it is captured, categorised and stored digitally. Log a business journey and your mileage claim is calculated automatically. Your income, expenses and mileage stay in tidy digital records all year — ready for each quarterly update, instead of a last-minute panic.

Summary

• MTD for Income Tax is phased in: £50k from April 2026, £30k from April 2027, £20k from April 2028.
• The threshold is your gross income (before expenses), and self-employment + property income are combined.
• If affected, you must keep digital records, send quarterly updates, and file a final declaration — all through MTD-compatible software.
• Still file your final 2025/26 Self Assessment return by 31 January 2027.
• Under £20k? Not required — but voluntary sign-up is allowed.