Your income before expenses
Qualifying income
£0
Wages, pensions, savings and dividends do not count.
Deadlines for 2027/28
Each update covers the tax year so far, so a mistake in one quarter is corrected in the next.
Penalties in your first year
The Budget on 28 October 2026 gave everyone joining in April 2027 a year's grace on quarterly updates.
- Joining in April 2027: a late quarterly update in 2027/28 earns no penalty point. You must still send all four before HMRC accepts your tax return.
- Joined in April 2026: the grace period ends on 5 April 2027. After that each late update earns a point, and four points bring a £200 penalty.
- The grace covers quarterly updates only. Penalties for a late tax return or late payment apply as normal.
How the threshold works
- HMRC looks at an earlier return. Income over £30,000 on your 2025/26 return, due by 31 January 2027, brings you in from 6 April 2027.
- Income over £50,000 on the 2024/25 return brought people in from 6 April 2026. Income over £20,000 on the 2026/27 return will bring people in from 6 April 2028.
- The test is income before expenses, so a landlord with a small profit can still be over the line.
- You will need software that works with Making Tax Digital. GOV.UK keeps a list, including free options.
- Some people are exempt, for example where digital record keeping is not practical for them. HMRC decides exemptions case by case.
Sources: GOV.UK Making Tax Digital for Income Tax, Budget 2026 overview of tax legislation.