Do I need Making Tax Digital?

A quick check for UK sole traders and landlords. Enter your income before expenses for each tax year you know.

Qualifying income = self-employment turnover plus UK and foreign property income, before any expenses, added together across all your businesses. Leave out wages, pensions and dividends.

How the rule works

MTD for Income Tax is phased in by income. HMRC looks at your Self Assessment return from two tax years earlier:

Once in, you keep digital records and send HMRC a quarterly update four times a year, using MTD-compatible software or a spreadsheet linked through bridging software. Some people are exempt or can ask to be (for example if it isn't reasonably practical for you to use digital tools).

General information, not tax advice. Check your own position on GOV.UK: check if you're eligible for MTD for Income Tax.

Need a spreadsheet that does the quarterly sums? I'll build an Excel or Google Sheets record book with HMRC categories and quarterly totals for bridging software. See the Fiverr gig

Or try the free MTD quarterly totals calculator.