The timeline
| Qualifying income above | Based on tax year | MTD starts |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
These thresholds are set out on GOV.UK. HMRC uses your Self Assessment returns to decide whether you're in scope and will write to people it thinks need to sign up.
What counts as qualifying income
Qualifying income is the gross income (before expenses) from self-employment and property combined. Employment income, pensions, dividends and savings don't count towards the threshold.
So a landlord with £25,000 of rent and a sole trader business turning over £30,000 has £55,000 of qualifying income — even if their profit is much lower.
What changes if you're in MTD
- Digital records: keep income and expense records in MTD-compatible software (or bridging software linked to spreadsheets).
- Quarterly updates: send a summary of income and expenses to HMRC every quarter. Updates are typically due by 7 August, 7 November, 7 February and 7 May.
- Final declaration: after the year ends, finalise your figures and add any other income, by 31 January — replacing the traditional return.
- Payment dates stay the same: 31 January and 31 July.
Penalties are changing too
MTD comes with a points-based system for late submissions and a new regime for late payments. Check GOV.UK for the current rules when you join.If you're under the threshold
Nothing changes yet. You keep filing an annual Self Assessment return as now. Watch the £30,000 (2027) and £20,000 (2028) thresholds — and remember they're based on gross income from earlier years.
Exemptions and special cases
Some people don't have to use MTD for Income Tax even if their income is over the threshold. HMRC's guidance covers situations including people who are digitally excluded (for example because of age, disability, location or religious beliefs), and certain types of taxpayer such as trustees. If you think you're exempt, you need to apply — it isn't automatic.
Partnerships are expected to join later than individuals. Check GOV.UK for the current list of exemptions and deferrals, as HMRC continues to update it.
Couples who both have property income
The threshold is tested per person. If you and your spouse jointly own a rental property, each of you counts only your share of the rent. A couple sharing £40,000 of rent equally each has £20,000 of qualifying property income.
What to do now
- Add up last year's gross self-employment and property income to see where you sit.
- Start keeping records digitally now, even if you're not in scope yet.
- Check HMRC's eligibility tool on GOV.UK and sign up when required.
TaxGo prepares annual Self Assessment returns for straightforward cases today. MTD quarterly reporting isn't supported yet — we'll say so clearly before you pay. Read more about what we support.