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Digital Tax Service · Guidance

Making Tax Digital for the Self-Employed

Last reviewed: Next review: Reviewed by the Digital Tax Service editorial team

Who Is Self-Employed for MTD Purposes?

For Making Tax Digital, ‘self-employed’ means a sole trader running a business in their own name (or as a sole-trader business), including freelancers, contractors, tradespeople, consultants, drivers, creators and online sellers. Partnerships and limited companies are treated separately and are not yet in scope for MTD ITSA at the April 2026 start.

When MTD Applies if You Are Self-Employed

The start date depends on your gross qualifying income (self-employment plus UK property combined, before expenses):

  • From 6 April 2026 — qualifying income above £50,000.
  • From 6 April 2027 — qualifying income above £30,000.
  • From 6 April 2028 — qualifying income above £20,000.

HMRC uses the figures from your most recent Self Assessment return to identify whether you are in scope. If you cross a threshold partway through your MTD journey, you may be brought in at the next applicable start date.

Check your MTD start date in 60 seconds

What Self-Employed People Must Do Under MTD

  1. Choose HMRC-recognised MTD-compatible software (or bridging software for spreadsheets).
  2. Sign up for MTD for Income Tax with HMRC and authorise your software.
  3. Keep digital records of all self-employment income and expenses.
  4. Send four quarterly updates per year — due 7 August, 7 November, 7 February and 7 May.
  5. Submit a year-end final declaration by 31 January following the end of the tax year.

Self-Employed With Multiple Income Sources

Many self-employed people also have rental income, employment income or savings income. Only your self-employment and UK property income count towards the MTD qualifying-income threshold, but all other income is still reported in your year-end final declaration as part of the full picture of your tax position.

Self-Employed and Already VAT-Registered

If you are VAT-registered, you must already be using MTD for VAT. From April 2026 you may also need MTD for Income Tax on top of MTD for VAT. The same software package can usually handle both.

MTD for VAT explained

Common Questions From Self-Employed People

Get Help Setting Up MTD

Our Making Tax Digital service is designed for self-employed people who want a clean, stress-free setup: eligibility check, software recommendation, HMRC registration and your first quarterly update prepared for you.

See our MTD setup service

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