The simple answer: Check your income.
If you're a UK sole trader or landlord earning £50,000 or more (gross), you legally have to use Making Tax Digital from 6 April 2026.
How to Count Your Income
- Income from your main self-employed work
- Income from side gigs
- Rental income (if you're a landlord)
- Income from selling goods online as a business
What If You're Below £50k?
You don't have to do MTD yet. But the government is lowering the threshold — those earning over £30,000 must join by April 2027, and over £20,000 by April 2028.
What If You Don't Comply?
If you should be using MTD and you don't, HMRC will issue penalty points leading to fines. The points-based system means one missed deadline won't immediately cost you — but they stack up.