Making Tax Digital Duties for UK Earners Over £50,000

By the GlobeBids Service Desk

From 6 April 2026, people with combined gross self-employment and property income above £50,000 must generally use Making Tax Digital for Income Tax. Those affected should check their HM Revenue & Customs position, arrange compatible software and begin keeping the required digital records.

The £50,000 test uses income before expenses

Eligibility is based on qualifying gross income, not taxable profit. This normally means adding together income from sole-trader work and property before deducting allowable expenses.

For example, £35,000 of freelance turnover plus £18,000 of gross property income produces qualifying income of £53,000. Expenses that reduce the eventual profit do not bring the qualifying-income figure below the threshold.

HMRC generally determines whether someone must join using information from their Self Assessment return. People with income close to the threshold should check the figures reported and any notice received from HMRC rather than relying on an estimate of profit.

For jointly owned property, each owner normally considers their own share of the gross property income—not the building’s entire rental income—alongside their individual self-employment income.

Digital records and quarterly updates are now required

Affected taxpayers must use compatible software to maintain digital records of qualifying business and property income and expenses. The software must also be able to send the required quarterly updates to HMRC.

The main duties are:

• Keep prescribed income and expense information digitally.
• Use software that works with Making Tax Digital for Income Tax.
• submit summary updates for each qualifying business every quarter.
• Complete the end-of-year process and file the required tax return by the applicable Self Assessment deadline.

Using an accountant does not remove the taxpayer’s legal responsibilities. An authorised agent may maintain records or submit information, but the individual should confirm who will perform each task and ensure compatible software is in place.

Quarterly updates are not four separate tax bills

A quarterly update reports summary information from digital records. It is not a separate tax return or an automatic demand to pay Income Tax four times a year.

The year-end process still matters because taxpayers must finalise their position, include other relevant income and claims, and submit their tax return. The final calculation can change after allowances, reliefs and year-end adjustments are included.

Some taxpayers can apply for an exemption

A person may be able to seek an exemption if it is not reasonable or practical for them to use digital tools because of factors such as disability, age, location or religious beliefs. Exemption is not automatic, and HMRC considers the person’s circumstances.

Anyone who believes an exemption applies should contact HMRC before assuming they can continue with paper or non-compatible records.

Check your position before changing your records

Review the gross self-employment and property income shown on your latest return, including only your share of jointly owned property income. Then check HMRC’s Making Tax Digital guidance and confirm whether your existing bookkeeping software is compatible. If an accountant acts for you, agree in writing who will keep records, send quarterly updates and complete the year-end return.

Source: HM Revenue & Customs