Who has to use Making Tax Digital?

Sole traders and landlords whose qualifying income is over the threshold for the year HMRC is looking at. It is being brought in in three stages.

Over £50,000 in the 2024 to 2025 tax year means you should have started on 6 April 2026. Over £30,000 in 2025 to 2026 means you start on 6 April 2027. Over £20,000 in 2026 to 2027 means you start on 6 April 2028.

The year that decides it is always a past one, so this is not something you can be caught by unexpectedly. HMRC looks at the tax return you already filed.

You also have to be registered for Self Assessment. Companies are not in this at all, and neither are partnerships yet. The thresholds and dates are on gov.uk.