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Making Tax Digital for Income Tax: where it came from, where it is now, and how DoneSE works

If you are self-employed and your qualifying income is over the threshold, Making Tax Digital for Income Tax changes how you report your income to HMRC. This post covers where it came from, where it stands today, what it asks of you through the year, and how DoneSE works.

A short history

Making Tax Digital was launched in 2015. The first plan put Income Tax first, in 2018, with VAT a year later.

It happened the other way round. VAT came first: from April 2019 for VAT-registered businesses with turnover above the VAT registration threshold, which was then £85,000, and from April 2022 for every VAT-registered business.

Income Tax was put back. In September 2021 its start moved to April 2024, and in December 2022 it moved again to April 2026, to be brought in by stages.

Where it is now

Whether Making Tax Digital for Income Tax applies to you depends mainly on your qualifying income, which HMRC defines as your total income from self-employment and property before expenses. HMRC takes the figure from a tax return you have already submitted. It applies if your qualifying income is:

  • over £50,000 for the 2024 to 2025 tax year: from 6 April 2026
  • over £30,000 for the 2025 to 2026 tax year: from 6 April 2027
  • over £20,000 for the 2026 to 2027 tax year: from 6 April 2028

Some people are exempt. The first GOV.UK page listed at the end of this post has the full test.

If it applies to you, there are three things to do: keep digital records of your income and expenses in compatible software, send HMRC a quarterly update four times a year for each business, and submit your tax return by 31 January after the tax year ends.

What the year looks like

The four quarterly updates are due on 7 August, 7 November, 7 February and 7 May.

Each update is a running total. It covers the year so far, up to the end of that quarter, not only the last three months. So if you correct your records during the year, the next update carries the corrected figures, without resending an earlier one.

An update contains the total for each category of income and expense. HMRC does not receive your individual records, such as a receipt or an invoice.

After the fourth update comes your tax return, which is due by 31 January after the tax year ends.

How DoneSE works

DoneSE is built around digital record keeping and quarterly updates for the self-employed.

  • Enter your figures. Add your self-employed income and expenses directly into DoneSE. Just enter what came in and what went out.
  • Keep it organised. Record and categorise as you go. Instead of facing months of paperwork at once, one simple place to keep the digital records you need.
  • Check your quarter. See your figures clearly before anything is sent. Review what you have entered and make changes if you need to.
  • Submit when ready. Happy with your quarter? Submit your quarterly update to HMRC. Nothing goes to HMRC until you choose to send it.

DoneSE tracks your four quarterly deadlines.

Do you need an accountant to use DoneSE? No. DoneSE is designed for the self-employed to manage Making Tax Digital for Income Tax themselves. If you do have one and they use DoneTax+, you can send them each quarter's figures to review.

Is DoneSE full accounting software? No - deliberately. If what you need is a full accounting suite with a large range of business-management features, DoneSE is not trying to be one. We built it to make one job simpler.

What to expect

DoneSE launches with manual entry. You enter your income and expenses directly, so no bank connection is needed to keep your digital records or send a quarterly update. Bank connection is coming soon.

DoneSE is in early access ahead of public launch. Get started and we'll email you the moment your account is ready.

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Where these facts come from

The dates, thresholds and deadlines above were read on 5 October 2026 from GOV.UK and the House of Commons Library:

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