01 / WHO NEEDS TO USE MTD?

The threshold is based on gross qualifying income.

MTD for Income Tax applies to sole traders and landlords registered for Self Assessment. The 2025/26 qualifying income figure is used for the threshold from 6 April 2027; the 2025/26 tax return is due by 31 January 2027.

From 6 April 2026

Applies if qualifying income was over £50,000 in 2024/25.

From 6 April 2027

Applies if qualifying income is over £30,000 in the 2025/26 tax year.

From 6 April 2028

Applies if qualifying income is over £20,000 in 2026/27.

What counts as qualifying income?

Qualifying income is GROSS: total self-employment turnover plus total rental income, added together, before expenses. It does NOT include employment (PAYE) income, pensions, savings interest, dividends, partnership income or company director income.

HMRC may write to you before the start of the tax year you need to join from — but don't wait for a letter: check your own figures. Some people can apply for an exemption, e.g. if digitally excluded. Read GOV.UK guidance about when MTD applies and exemptions

Find out if and when you need to use Making Tax Digital for Income Tax
02 / A QUICK CHECK

Is your 2025/26 total over £30,000?

Example figures are pre-filled; replace them with yours. Your answers are not saved.

Total qualifying income: £31,000.00

MTD likely applies to you from 6 April 2027 — first quarterly update due 7 August 2027

Worked example: £22,000 turnover + £9,000 rent = £31,000 → over £30,000.

03 / WHAT CHANGES

What happens if MTD applies?

  • Keep digital records.
  • Send quarterly updates through HMRC-recognised software. The deadlines are 7 August, 7 November, 7 February and 7 May.
  • Send a final tax return by 31 January.

Submission still goes through HMRC-recognised software.

04 / NEXT STEPS

Check the details and organise your records.

Read about the quarterly update deadlines Check the trading allowance
MTD Quarterly Workbook · for keeping records, not submitting updatesFind it in the Etsy shop