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MTD checker
When does Making Tax Digital apply to you?
Four questions, no email required. Built for sole traders and landlords who need to know their start date and what to do about it.
Based on HMRC guidance as at September 2026. Qualifying income means gross self employment turnover plus gross property income, before expenses, taken from the tax return for the year two years before the year you would join. This is a guide, not advice for your circumstances.
What happens once you are in
Four updates and one final declaration
Digital records
Income and expenses recorded in compatible software as they happen, not retyped from a spreadsheet at the year end.
Quarterly updates
A summary sent to HMRC by 7 August, 7 November, 7 February and 7 May. Information only, no tax to pay.
Final declaration
Year end adjustments, reliefs and any other income brought together by 31 January, as Self Assessment is now.
Questions
About Making Tax Digital
What exactly counts as qualifying income?
Gross self employment turnover plus gross property income added together, before any expenses. Employment income, dividends, pensions and savings interest are not included in the test.
Which tax year is tested?
The return for the year two years before the year you would join. So joining in April 2027 is tested on your 2025 to 2026 return.
Do I still file a Self Assessment return?
The final declaration replaces it and does the same job. You still report all your other income there and pay on the same dates.
What are the penalties?
Late quarterly updates attract penalty points, with a financial penalty once you reach the threshold. Late payment penalties are separate and charged as a percentage of the tax outstanding.
Can I be exempt?
Exemptions exist for the digitally excluded and some other narrow cases. We can apply on your behalf if you qualify.
What if I have several businesses or properties?
You report each business and each property business separately, but the threshold test adds all of it together.
