Making Tax Digital for Income Tax (MTD for IT) is being introduced in stages, based on how much qualifying income you have from self-employment and/or property. This guide helps you work out where you stand — in plain English.
Independent guide from MTD Together • Not HMRC • Always check GOV.UK for the definitive rules
Sole trader? Your self-employment income counts towards the MTD threshold.
Landlord? Your UK property income counts too — and the two may need to be added together.
Over £50,000
MTD from 6 April 2026
Qualifying income above £50,000 in the 2024/25 tax year means MTD for Income Tax applies from 6 April 2026.
Over £30,000
MTD from 6 April 2027
Qualifying income above £30,000 in the 2025/26 tax year means MTD applies from 6 April 2027.
Over £20,000
MTD from 6 April 2028
The government has announced the threshold will extend to qualifying income above £20,000 from 6 April 2028.
What counts as “qualifying income”? Broadly, it's your gross income — your turnover — from self-employment and property before expenses are taken off. It's not your profit, and it's not what you pay tax on.
If you have more than one qualifying source — for example, you're a sole trader and also rent out a property — those amounts may need to be combined when working out which band you fall into.
Everyone's situation is different. If you're close to a threshold, or your income varies year to year, confirm your individual position using the official HMRC guidance or by contacting HMRC directly.
If Making Tax Digital applies to you, three things change. None of them are as scary as they sound.
You'll need to record your business income and expenses digitally, instead of relying on paper records alone.
Your records need to live in software that HMRC recognises as compatible with Making Tax Digital — there are options at different prices, including free ones.
Instead of everything happening once a year, you'll send HMRC a summary of your income and expenses every three months. After the tax year ends, you'll submit your tax return through your software by 31 January.
A short, non-intimidating checklist — no deadlines looming if you start early.
That's exactly what MTD Together is for. Book a free 15-minute readiness call, and if you'd like hands-on help afterwards, our £99 one-to-one Digital Setup Session gets your chosen software set up with you — and shows you how to use it confidently.
Independent support service • Not HMRC • No obligation
Turnover — not profit. HMRC uses your “qualifying income”: the total (gross) income from your self-employment and/or property before any expenses are deducted. Someone with £55,000 of turnover but only £20,000 of profit would still be above the first threshold. It's the figure on your Self Assessment return before expenses that matters, so it's worth checking yours.
It can do. Your PAYE salary from employment doesn't count towards the MTD threshold — but it doesn't exempt you either. HMRC only looks at your qualifying income from self-employment and property. If that income is above the threshold for a given start date, MTD for Income Tax applies to that part of your affairs, while your employment carries on through PAYE as normal.
Yes. MTD for Income Tax covers landlords on the same timetable as sole traders. UK property income counts towards the threshold, and if you have both self-employment and property income, the two are generally added together. Jointly owned property has some specific rules, so check the GOV.UK guidance if that applies to you.
No. There's no requirement to use an accountant — you can keep your own digital records and send your own quarterly updates and tax return using MTD-compatible software. Some people choose to use an accountant or agent, especially if their affairs are complex, but that's optional. (We help with the digital setup side; we don't give tax advice.)
Not on their own. A spreadsheet by itself isn't MTD-compatible software. However, HMRC does allow spreadsheets to be used alongside “bridging software” — a tool that links your spreadsheet to HMRC and submits the figures digitally. If you love your spreadsheet, that's the compliant way to keep it; otherwise, record-keeping software does the whole job in one place.
MTD applies based on the qualifying income on your most recent relevant tax return, so a good year can bring you into scope and HMRC will confirm your start date. Once you're in MTD, a later dip in income doesn't automatically take you back out — there are rules about when you can leave the system. If your income bounces around a threshold, check the current GOV.UK guidance or ask HMRC about your position.
These answers are general guidance, not tax advice. For the definitive rules, always refer to the official Making Tax Digital for Income Tax guidance on GOV.UK.