If you are a sole trader and you are worried about missing the MTD start date, take a breath. The start date depends on your qualifying income and HMRC is phasing the rules in over several years.
Current GOV.UK/HMRC position: MTD for Income Tax is being phased in. The current thresholds are over £50,000 from 6 April 2026, over £30,000 from 6 April 2027, and over £20,000 from 6 April 2028, based on qualifying income for the relevant tax years. Rules can change, so always check the latest official GOV.UK/HMRC guidance.
For context, you may also want to read Tax Basics for UK Freelancers, Best Accounting Software for UK Freelancers and the Sole Trader Expenses Guide.
The short answer
Making Tax Digital for Income Tax starts from 6 April 2026 for the first group of sole traders and landlords. You are not automatically included just because you are self-employed. You need to look at your qualifying income and the tax year HMRC is using to decide whether you are in scope.
The current phased dates are: from April 2026 for qualifying income over £50,000, from April 2027 for qualifying income over £30,000, and from April 2028 for qualifying income over £20,000. These thresholds are based on qualifying income for specific tax years, so do not rely only on what you expect to earn in the future.
How HMRC works out the start date
HMRC says it will review Self Assessment tax returns and check qualifying income each tax year. If your income is above the relevant threshold, HMRC should write to you before the start of the tax year when you need to use MTD. For example, if your qualifying income for 2024 to 2025 is over £50,000, HMRC says you need to use MTD for Income Tax from 6 April 2026.
However, GOV.UK is clear that not receiving a letter does not remove your responsibility. If you believe your qualifying income is above a threshold, you should check the official tool or guidance and speak to your accountant if you have one. This is especially important if you filed late, changed business activity, or have property income as well as freelance income.
Sole trader examples
Imagine a freelance consultant with £62,000 of self-employed income in 2024 to 2025 before expenses. If they are registered for Self Assessment and no exemption applies, they are likely to be in the April 2026 group. A photographer with £38,000 of qualifying income in 2025 to 2026 may fall into the April 2027 group. A designer with £24,000 of qualifying income in 2026 to 2027 may be caught from April 2028.
These are simple examples, not personal advice. The actual answer can depend on what income counts, whether you are already in Self Assessment, whether property income is involved, and whether an exemption applies.
What to do before your start date
Your first job is to know your numbers. Check your gross freelance income for the relevant tax years, not just your profit after expenses. Then look at how your records are kept. If income and expenses are scattered across bank accounts, email receipts, paper notes and payment apps, bring them together before MTD becomes urgent.
Next, review software. You do not need the most expensive system, but you will need a process that supports digital records and HMRC-compatible submissions if you are within scope. Our software guide and MTD checklist can help you compare options calmly.
FAQs
Does every sole trader start in April 2026?
No. The first mandatory group is based on qualifying income over £50,000 for the relevant tax year.
What if my income changes each year?
HMRC reviews qualifying income by tax year, so your position can change as your business grows or shrinks.
Can I wait until HMRC writes to me?
You should not rely only on a letter. GOV.UK says it remains your responsibility to check whether and when you need to use MTD.
A calm timeline for getting ready
If your likely start date is April 2026, preparation should already be practical rather than theoretical. Check that your 2024 to 2025 Self Assessment figures are complete, confirm whether your qualifying income is over the threshold, and make sure you understand how your current records would become digital records. If your likely start date is April 2027 or April 2028, you have more time, but it is still sensible to improve your routine now.
A simple timeline is to check your income first, then review your bookkeeping, then test software, then speak to an accountant if anything is unclear. Try not to start with software adverts. Start with the facts: your income, your records and your deadlines.
What if you start freelancing after the threshold year?
Newer sole traders can find the timing confusing because HMRC uses Self Assessment information to decide when MTD applies. If you have not yet submitted your first Self Assessment tax return, GOV.UK says you do not need to start using MTD for Income Tax until after that first return has been submitted. That does not mean you can ignore record keeping. It means you should still keep clean records while checking the official guidance for your own start date.
More Making Tax Digital guides
- Making Tax Digital: What UK Freelancers Need to Know
- Making Tax Digital Income Thresholds Explained
- Best Making Tax Digital Software for Freelancers
- Do Side Hustles Need Making Tax Digital?
- Making Tax Digital Checklist for Freelancers
- Making Tax Digital vs Self Assessment
- Making Tax Digital Penalties: What Freelancers Should Know
Related freelancer money guides
- Tax Basics for UK Freelancers
- Best Accounting Software for UK Freelancers
- Sole Trader Expenses Guide
- Existing Making Tax Digital guide
Disclaimer: Freelance Wallet UK provides general information only. It is not financial, tax or legal advice. Always check official HMRC/GOV.UK guidance or speak to a qualified professional for your own situation.