Who has to comply with MTD for Income Tax?
Making Tax Digital for Income Tax applies to sole traders and landlords, phased in by income. Whether you’re in (and from when) comes down to your qualifying income: your combined gross income from self-employment and property. Here are the thresholds, the dates, and how to work out which one is yours.
Reviewed July 2026. Figures are correct at the date of review. Always check GOV.UK for the latest.
The short answer
You have to comply with MTD for Income Tax if you’re a sole trader or landlord and your qualifying income is over the threshold for the relevant year. The thresholds fall over three years, so more people are brought in over time.
The thresholds and dates
| From | You must comply if qualifying income is over | HMRC checks your |
|---|---|---|
| 6 April 2026 | £50,000 | 2024 to 2025 tax return |
| 6 April 2027 | £30,000 | 2025 to 2026 tax return |
| 6 April 2028 | £20,000 | 2026 to 2027 tax return |
HMRC uses the qualifying income on your most recent Self Assessment return to decide when you join, so you won’t need to start until after you’ve filed the relevant return.
What counts as qualifying income
Qualifying income is your total gross income from self-employment and property, added together, before expenses, and not your profit. That last point catches a lot of people out: it’s turnover and rents received, not what’s left after costs.
Example: £30,000 from a trade plus £25,000 from a rental property is £55,000 of qualifying income. That’s over £50,000, so you’d join from April 2026, even though neither source on its own reaches the threshold.
Employment income, dividends and other income don’t count towards the threshold. They don’t push you into MTD, but you still report them as part of your final declaration.
What if you’re below the threshold?
If your qualifying income is under £50,000 you’re not required to join in April 2026, but keep an eye on the lower thresholds in 2027 and 2028, which will bring many more people in. You can also join voluntarily if you’d rather move to digital, quarterly reporting early.
Not sure which threshold is yours?
We’ll confirm exactly whether and when MTD applies to you, based on your actual figures. No guesswork.Take our 2-minute quiz or get in touch and we’ll check it for you.
Frequently asked questions
Common questions about who’s affected and when.
Who has to comply with MTD for Income Tax?+
Sole traders and landlords whose combined gross income from self-employment and property is over the threshold for the relevant year: £50,000 from April 2026, £30,000 from April 2027, and £20,000 from April 2028.
Does employment income or dividends count towards the threshold?+
No. Only gross income from self-employment and property counts towards the qualifying-income threshold. Employment income, dividends and other income don’t push you over the line, but you still report them in your final declaration.
What if my income is from two different sources?+
You add them together. £30,000 from a trade plus £25,000 from a rental property is £55,000 of qualifying income, so you’d join from April 2026, even though neither source alone is over £50,000.
Which tax return does HMRC use to decide?+
HMRC looks at the qualifying income on your most recent Self Assessment return. For the April 2026 start, that’s your 2024 to 2025 return; for April 2027, your 2025 to 2026 return; and for April 2028, your 2026 to 2027 return.
Are any people exempt?+
Some individuals may be exempt or have a deferred start date (for example certain circumstances HMRC recognises). The rules are detailed and can change, so check your position on GOV.UK or ask us to confirm it for you.
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