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Free tool · Making Tax Digital

Does MTDapply to me?

Enter your turnover and rent to see if and when you'll need to send quarterly updates to HMRC.

£

Total sales or income before expenses, across all your sole-trader businesses.

£

Gross rent before expenses. For jointly owned property, include only your share.

Wages, pensions, dividends and savings interest don't count towards the threshold.

Qualifying income

Illustrative estimate

£0.00

If this was your income in the test year below, Making Tax Digital applies from 6 April 2027.
  • –From 6 April 2026: over £50,000Based on your 2024/25 tax return
  • From 6 April 2027: over £30,000Based on your 2025/26 tax return
  • From 6 April 2028: over £20,000Based on your 2026/27 tax return

Once you're in, you keep digital records, send quarterly updates from compatible software and still finish the year with a final declaration by 31 January.

Illustrative check based on HMRC's announced thresholds. Some people are exempt, for example if you can't use computers. Check GOV.UK before you rely on it.

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The three thresholds

Making Tax Digital for Income Tax is being phased in by income:

  • Over £50,000: from 6 April 2026, based on your 2024/25 return.
  • Over £30,000: from 6 April 2027, based on your 2025/26 return.
  • Over £20,000: from 6 April 2028, based on your 2026/27 return.

It's turnover, not profit. A plumber with £35,000 of sales and £15,000 of costs has £35,000 of qualifying income, so they're in from April 2027.

Worked example

Alex has £28,000 of freelance turnover and £9,000 of gross rent from a flat. Qualifying income is £37,000. That's under £50,000 but over £30,000, so if Alex's 2025/26 return shows the same figures, MTD applies from 6 April 2027.

What changes for you

You'll need software that connects to HMRC, quarterly updates (due by the 7th of the month after each quarter ends), and a final declaration by 31 January. Penalties for late submissions move to a points system. Read the full MTD guide.

Questions

Asked and answered.

01

When does Making Tax Digital for Income Tax start?

From 6 April 2026 for sole traders and landlords with qualifying income over £50,000, from 6 April 2027 for over £30,000, and from 6 April 2028 for over £20,000.

02

What counts as qualifying income?

Your gross self-employment turnover plus your gross property income, before expenses. Employment income, pensions, dividends and savings interest are not included. For jointly owned property, only your share counts.

03

Which year's income decides whether I'm in?

HMRC looks at the tax return for the tax year two years before. Your 2024/25 return decides whether you start in April 2026, your 2025/26 return decides April 2027, and so on.

04

What do I have to do under MTD?

Keep digital records of your business and property income and expenses, send a summary to HMRC every quarter from compatible software, and submit a final declaration by 31 January after the tax year, which replaces the usual tax return.

05

Is anyone exempt?

Yes. You can apply for an exemption if it isn't reasonably practical for you to use digital tools, for example because of age, disability or location. Some groups, such as partnerships, are not included yet.

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