Making Tax Digital for sole traders: when does it apply?

For a sole trader, the figure that matters is your turnover: total income from self-employment, measured before expenses. If that, plus any property income, is more than £50,000 for 2024 to 2025, MTD for Income Tax applies from 6 April 2026. The lower steps are over £30,000 for 2025 to 2026 (from 6 April 2027) and over £20,000 for 2026 to 2027 (from 6 April 2028).

What changes once you are in

• You send quarterly updates, which are summaries of your income and expenses, using compatible software. The dates are on the deadlines page.
• Quarterly updates are not tax returns. You still submit one tax return every tax year, by 31 January following the end of the tax year.

What does not count

Employment income taken through PAYE, dividends, the State Pension and private pensions do not count towards qualifying income. A share of partnership profit taken as an individual partner does not count either, and partnerships are not currently required to use MTD for Income Tax.

Work out your own position with the checker; see all thresholds and exemptions.

Sources: GOV.UK, "Find out if and when you need to use Making Tax Digital for Income Tax"; "Work out your qualifying income for Making Tax Digital for Income Tax"; "Use Making Tax Digital for Income Tax - Before you use this guide - Guidance - GOV.UK". All read 10 October 2026.