Do I need Making Tax Digital for Income Tax?
Short answer: you need Making Tax Digital for Income Tax if you’re a sole trader or landlord registered for Self Assessment and your qualifying income is more than the threshold. HMRC checks the tax return from two years earlier (GOV.UK).
Qualifying income is your income from self-employment and property before expenses: UK property, plus foreign property if you’re UK resident. For jointly owned property, only your share counts (how to work out qualifying income).
HMRC’s policy paper says the Income Tax (Digital Obligations) Regulations 2026 lower the threshold to £20,000 from 6 April 2028 (HMRC policy paper).
Exemptions
GOV.UK lists automatic exemptions and exemptions you apply for.
Automatic exemptions (you don’t need to contact HMRC):
- qualifying income of £20,000 or less
- no National Insurance number before the start of the tax year
- personal representatives of someone who has died
- trustees filing a trust return (SA900) and non-resident companies (SA700)
- people who can’t provide information to HMRC and have a power of attorney or deputy acting for them
Not yet included: partnerships don’t need to use MTD for Income Tax yet. HMRC will set out a timeline later.
Deferred until April 2027: people whose 2024 to 2025 return included averaging relief (farmers, market gardeners, creators), qualifying care relief (foster or kinship carers), trust or estate income (SA107), or residence and remittance pages (SA109).
Deferred until a later date: ministers of religion, Lloyd’s members, and people claiming Married Couple’s Allowance or Blind Person’s Allowance.
Exemptions you apply for: if you’re digitally excluded, for example because of age, health or disability, religious beliefs, or no internet access, you can apply for an exemption by phone or in writing. Being unfamiliar with software, or having filed on paper before, is not enough on its own.
Check if your income is over the threshold
Enter your income before expenses for one tax year. Leave out wages, pensions, dividends, savings and partnership profits: they don't count.
| If your qualifying income in | was more than | you must use MTD from |
|---|---|---|
| 2024 to 2025 | £50,000 | 6 April 2026 |
| 2025 to 2026 | £30,000 | 6 April 2027 |
| 2026 to 2027 | £20,000 | 6 April 2028 |
This is a quick guide, not tax advice. Exemptions and special cases are listed above the checker.
Questions
What is the MTD for Income Tax threshold?
More than £50,000 of qualifying income in the 2024 to 2025 tax year means you start from 6 April 2026. More than £30,000 in 2025 to 2026 means 6 April 2027, and more than £20,000 in 2026 to 2027 means 6 April 2028.
What counts as qualifying income?
Your total income from self-employment and property before expenses, from your Self Assessment tax return. Employment (PAYE) income, partnership profits, dividends and pensions do not count.
Is the threshold based on profit or turnover?
Turnover. Qualifying income is the amount before expenses.
Can I stop using MTD if my income falls?
Only if your qualifying income stays below the threshold for 3 tax years in a row, or you amend the previous year's tax return to take it below the threshold. Then you can choose to opt out.
Will HMRC sign me up automatically?
GOV.UK says that from September 2026 HMRC will start to sign up anyone who needs to use MTD for Income Tax for the 2026 to 2027 tax year and has not signed themselves up.
Facts on this page last checked against GOV.UK on 17 Oct 2026.