Home / Help / Making Tax Digital

Does MTD apply to sole traders?

By the VoxaMTD team. Last verified 31 October 2026

Yes, if your qualifying income is above the threshold. Making Tax Digital for Income Tax covers sole traders and landlords registered for Self Assessment, starting with income over £50,000 from 6 April 2026, then over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.

Qualifying income is your total gross income from self-employment and property before expenses, taken from your previous tax return. If you have both a trade and rental income, the two are added together to test against the threshold.

Employment income taxed under PAYE, dividends and pensions do not count towards the threshold, though you still declare them on your tax return. If you are below the threshold you do not have to use the service yet, but you can sign up voluntarily.

Once you are in, you keep digital records, send four quarterly updates a year for each business and submit your tax return through your software.

Read next

Sources

More on making tax digital

Get ready for your next quarterly update

VoxaMTD records your rent and expenses as digital records and sends your quarterly updates to HMRC, with landlord calculators built in.

Try VoxaMTD free →

General information, not tax or legal advice. Rules differ between England, Wales, Scotland and Northern Ireland.