Just gone self-employed: when does MTD start for you?

Checked against gov.uk on 8 July 2026. When the rules change, this page changes.

Not on day one, and not this year either. gov.uk puts it in a single sentence: "You do not need to start using Making Tax Digital for Income Tax until after you have submitted your first Self Assessment tax return." A brand-new sole trader is outside MTD by definition. What matters is knowing the sequence, because each step has its own deadline.

The rule, verbatim

Making Tax Digital is switched on by your tax history. HMRC tests your qualifying income from the returns you've filed, so until a first return exists, there's nothing to test. "You do not need to start using Making Tax Digital for Income Tax until after you have submitted your first Self Assessment tax return."

That means the questions for a new sole trader come in order: register, file, and only then check MTD. The first-year guide walks the whole road; here's the MTD-shaped view of it.

The timeline, worked through

Say you start trading in September 2026:

• 2026-27 is your first tax year. It runs to 5 April 2027.
• Register for Self Assessment by 5 October 2027. That's the registration deadline after your first tax year ends.
• First tax return due 31 January 2028, covering 2026-27. This is a normal Self Assessment return, not an MTD one.
• Now MTD can see you. If that return shows qualifying income over the threshold in force, MTD applies from the following 6 April. For 2026-27 income the test is £20,000, so in this example the earliest MTD could start is 6 April 2028.

Every date shifts with your start date, but the shape never does: no MTD until after return number one. The checker gives you your own dates.

Don't wait for the letter

gov.uk says HMRC "will write to you, confirming that you need to start using Making Tax Digital for Income Tax by the start of the upcoming tax year" when your income is over the line. It also says this: "If you do not receive a letter, it is still your responsibility to check if and when you need to use Making Tax Digital for Income Tax". The letter is a courtesy. The obligation is yours either way.

What to do in the meantime

Two things, both cheap now and expensive later:

• Keep digital records from day one. Your first return needs your income and expenses anyway, and if MTD is in your future, the record-keeping habit is the whole adjustment. Start as you'll be required to continue and mandation becomes a non-event.
• Know your turnover as you go. The MTD threshold tests gross income, not profit, so a good first year can put you over a line you weren't watching.

You can also join early if you want: "You can sign up for Making Tax Digital for Income Tax before you're required to use it." The sign-up guide gives the honest read on volunteering.

Quick answers

Related guides: Your first year self-employed, step by step · Signing up for MTD · The threshold: turnover, not profit

Sources: gov.uk, find out if and when you need to use Making Tax Digital for Income Tax (updated 26 March 2026); sign up for Making Tax Digital for Income Tax (updated 26 June 2026); register for Self Assessment. Checked on 8 July 2026.