TidyBooks UK

Do I need Making Tax Digital?

Put in your income before expenses. You'll see whether MTD for Income Tax applies to you, when you start, and your first year of deadlines.

Your turnover as a sole trader, before expenses. Leave blank if none.

Rent and other property income before expenses. If you own jointly, just your share.

HMRC looks at the tax return from two years before your start date.

Keep your records ready for MTD

A spreadsheet for sole traders and landlords that works out each quarterly update for you, so you don't need to pay for accounting software.

See the MTD spreadsheet

Common questions

What counts as qualifying income?

Your self-employment income plus your property income, both before expenses. For property you own with someone else, only your share counts.

These don't count: wages from a job (PAYE), pensions, dividends, savings interest, and your share of profit from a partnership.

How do the quarterly updates work?

You keep digital records and send four updates a year. Each one covers the tax year so far, not just the latest three months. With standard quarters they're due by 7 August, 7 November, 7 February and 7 May. After the year ends, a final declaration replaces your Self Assessment return and is due by 31 January.

Can I keep using a spreadsheet?

Yes. HMRC-recognised bridging software reads the figures from your spreadsheet and sends them for you. Search GOV.UK for "software compatible with Making Tax Digital for Income Tax" and filter for spreadsheet options.

Will HMRC tell me if I need to join?

HMRC checks your Self Assessment return each year and writes to people who are over the threshold. Don't wait for the letter if you know you're over it: setting up your records early makes the first quarter much easier.

Are there exemptions?

Some people can apply for an exemption, for example if they're digitally excluded. Partnerships will join later, on a date HMRC hasn't set yet. GOV.UK has the full eligibility and exemption guidance.

Filing a 2025/26 tax return first?

Before MTD starts, there's the January return. Our free self-employed tax calculator shows what you'll owe on 31 January 2027, including payments on account.