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Key dates
The rule looks at the tax year two years before. If your qualifying income goes over the limit in that year, you start on the date in the right-hand column.
| Your income in | Over | You start |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
Source: GOV.UK, Find out if and when you need to use Making Tax Digital for Income Tax. Checked .
What counts as qualifying income
Add up your income from self-employment and from property, before expenses. That total is your qualifying income.
- Counts: CIS and other self-employed work, and rent (your share if you own with someone).
- Does not count: wages from a PAYE job, dividends, pensions, and your share of partnership profit.
GOV.UK's example: £25,000 rent plus £27,000 self-employed income is £52,000 of qualifying income.
What changes once you are in
- You keep your records in software that works with Making Tax Digital.
- Every 3 months, the software sends HMRC a short summary, called a quarterly update. The due dates are 7 August, 7 November, 7 February and 7 May.
- You still send a tax return at the end of the year, through the same software.
Before you start, you send your tax return for the year before in the normal way.
Questions
Do I use my pay before or after the CIS tax is taken off?
Before. HMRC looks at your qualifying income, which is your income before expenses (your turnover). For CIS work that is the gross amount on your payment and deduction statements, before the 20% or 30% was taken off.
Does my wage from a PAYE job count?
No. Only income from self-employment and property counts. Wages from a job, dividends from your own company, pensions and your share of partnership profit do not count.
I earn £20,000 or less. Do I need it?
No. GOV.UK says that if your qualifying income is £20,000 or less, you are automatically exempt.
Will HMRC write to me?
HMRC checks your tax return each year. If you are over the line, it writes to you. If no letter comes, it is still up to you to check and sign up.
When is my first quarterly update due?
If you start on 6 April 2027, your first update covers 6 April to 5 July 2027. It is due by 7 August 2027.
What if I am late with an update in my first year?
In the Budget on 28 October 2026, the government said people who join in April 2027 will not get penalty points for late submission of their first four quarterly updates for 2027 to 2028.
Is this checker from HMRC?
No. It is a free tool from Sovereign Plus, built from the GOV.UK guidance. HMRC has its own checker on GOV.UK, and HMRC's view is the one that counts.
Sources
- Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK): the £50,000, £30,000 and £20,000 limits and start dates.
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK): what counts.
- Find out if you can get an exemption (GOV.UK): £20,000 or less is exempt.
- Send quarterly updates (GOV.UK): the 7 August, 7 November, 7 February and 7 May deadlines.
- Self Assessment tax return deadlines (GOV.UK): online returns for 2025 to 2026 by 31 January 2027.
- Budget 2026 (GOV.UK, 28 October 2026): no penalty points for late first four updates for people joining in April 2027.
Checked against GOV.UK on .