Making Tax Digital for Income Tax Self-Assessment (MTD - ITSA) 

You will need to use Making Tax Digital for Income Tax from 6 April 2026 or 6 April 2027 if all the following apply: 

• you are registered for Self Assessment 
• you get income from self-employment or property, or both 
• you are not exempt 
• your total qualifying income is more than £50,000 or £30,000 respectively 
• income from employment, dividends, savings, do not count towards qualifying income 

What Counts Towards MTD Qualifying Income 

Your qualifying income is the combined income that you get in a tax year from self-employment and property income sources. HMRC assesses your gross income or turnover before you deduct expenses and refers to both self-employment and rental income as business income. 

All other sources of income reported through Self-Assessment, such as income from employment, dividends or savings, do not count towards your qualifying income. 

What Next? 

Register for MTD - https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax#full-publication-update-history

Overview - https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax 

How it works - https://www.gov.uk/guidance/using-making-tax-digital-for-income-tax 

Software - https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax 

Other information

UK Non-Residents - If you are resident or domiciled outside of the UK, only income from UK self-employment and UK property will count towards your qualifying income. You do not need to use Making Tax Digital for Income Tax for your foreign income. 

Foreign Income/UK Resident - If you are resident and domiciled in the UK your income from foreign property or foreign self-employment will count towards your qualifying income. 

Major Software Provider Updates Sole Traders on Making Tax Digital

This is a well written summary of the forthcoming changes by Xero, which is one of the approved software providers listed by HMRC.

https://www.xero.com/uk/programme/making-tax-digital/making-tax-digital-for-the-self-employed/#