MTD thresholds: which tax year decides your start?
HMRC looks back at the qualifying income reported on your relevant Self Assessment return. These are entry stages, not three different rates of tax. The first cohort started on 6 April 2026 — that date has already passed as at this page's review date.
| Return year | Qualifying income | Start date |
|---|---|---|
| 2024/25 | More than £50,000 | 6 April 2026 |
| 2025/26 | More than £30,000 | 6 April 2027 |
| 2026/27 | More than £20,000 | 6 April 2028 |
Exactly the amount is not over it. Income below one stage's threshold can exceed the next stage's lower threshold. A later fall in income does not, by itself, erase an earlier obligation. Read HMRC's staged start-date guidance.
How qualifying income is calculated
Add gross turnover from all your self-employment businesses to gross property income before expenses. Do not deduct business costs, mortgage interest, allowances or losses to decide the threshold. Employment income, savings interest, dividends and your share of partnership profits do not count towards this qualifying-income test.
Use your own share of jointly owned property income. Where income covers an unusual accounting period, a business has started or stopped, or returns are missing or amended, check HMRC's qualifying-income rules. This simple checker does not apportion unusual periods or resolve overseas/non-resident income treatment.
Worked examples: gross trade income plus rent
These examples assume earlier years were below their thresholds and no exemption applies. The 2026/27 amounts are forecasts at the October 2026 review date, not filed-return eligibility decisions. Totals and dates use the same engine as the checker.
| Example / year | Trade + property | Combined | Normal-rule outcome |
|---|---|---|---|
| Combined trade and rent 2024/25 | £35,000.00 + £15,000.01 | £50,000.01 | Started 6 April 2026 |
| Exactly the first threshold 2024/25 | £50,000.00 + £0.00 | £50,000.00 | No stage exceeded on these inputs |
| Later combined income 2025/26 | £24,000.00 + £7,000.00 | £31,000.00 | Starts 6 April 2027 |
| Landlord, forecast example 2026/27 | £0.00 + £20,001.00 | £20,001.00 | Starts 6 April 2028 (indicative) |
| Exactly the long-term amount 2026/27 | £12,000.00 + £8,000.00 | £20,000.00 | No stage exceeded on these inputs |
What you need to do under MTD
- Use software compatible with MTD for Income Tax and keep digital records of business income and expenses.
- Send quarterly updates for each relevant self-employment and property business. Updates are cumulative summaries, not separate tax returns and not individual invoices.
- Complete year-end adjustments and submit your annual tax return through compatible software. Include other taxable income and claims in the annual reporting process.
MTD changes how you report, not the Income Tax rates. The annual tax-return deadline remains 31 January following the tax year; normal tax-payment obligations, including payments on account where applicable, remain separate. Read HMRC's quarterly-update guidance and first-year annual reporting guidance.
Verified quarterly deadlines for 2026/27
| Standard period ending | Update due |
|---|---|
| 5 July 2026 | 7 August 2026 |
| 5 October 2026 | 7 November 2026 |
| 5 January 2027 | 7 February 2027 |
| 5 April 2027 | 7 May 2027 |
These are the standard-period deadlines, verified from the 2026 Regulations. A calendar-quarters election changes the period boundaries; specialist start/cessation situations need HMRC guidance. Quarterly deadlines are not quarterly tax-payment deadlines.
Possible exemptions and cases needing HMRC review
HMRC distinguishes automatic exemptions from exemptions requiring an application. HMRC lists qualifying income of £20,000 or less as an automatic exemption, without an application. This must be applied using the relevant qualifying-income rules, not simply a current-year forecast. Transitional stages still matter: it does not cancel an obligation established by an earlier return.
For existing MTD users, HMRC describes opting out after income is below the relevant threshold for 3 consecutive years, using the fourth quarterly update for the third year to check eligibility, or after an eligible amendment to the previous year's return. You must select the opt-out option in your HMRC account when eligible — do not stop on the basis of one lower year. Read HMRC's stopping and change-of-circumstances guidance.
You may be able to apply if it is not reasonable or practical for you to use digital tools because of age, disability, location or other circumstances, or if religious beliefs are incompatible with digital communications or digital records. The checker does not assess or approve digital exclusion. Apply through HMRC where required.
Specialist and temporary exemption categories can cover particular people, relief claims or supplementary return pages. Trusts, estates, non-resident circumstances, no National Insurance number, qualifying care relief, averaging relief and other unusual cases need the exact current category checked — these are not all equivalent or permanent exemptions. Read HMRC's current exemption conditions.
Partnerships themselves are not currently mandated and their timetable is to be announced. A partner's separate sole-trade and property income can still bring the individual into MTD. Limited companies are outside this Income Tax checker.
Not registered for Self Assessment, or a return is missing?
HMRC uses return information to establish qualifying income. A new sole trader or landlord normally first registers for Self Assessment and submits a return; the relevant return then determines the MTD position. Not being registered, or submitting late, is not an exemption. Resolve missing returns and use HMRC's eligibility guidance rather than treating an estimate as a confirmed decision.
Need MTD-compatible software?
Check that software supports your business types, digital records, quarterly updates and annual reporting. Compare functionality, accessibility and any charges directly with the provider. SoloCalc does not endorse a provider or sell software here.
MTD Income Tax questions
Do I need Making Tax Digital for Income Tax?
Under the normal entry rules, combined gross self-employment and property income over £50,000 in 2024/25 means starting on 6 April 2026; over £30,000 in 2025/26 means 6 April 2027; over £20,000 in 2026/27 means 6 April 2028. HMRC uses Self Assessment return figures. Exemptions and specialist rules can change the position.
Are the MTD thresholds based on profit or turnover?
Gross income before expenses, not profit. Add your gross turnover from all sole trades to your gross property income. Employment income, dividends, savings interest and partnership profit shares do not count towards qualifying income.
What if I earn exactly £50,000, £30,000 or £20,000?
Each stage applies only when income is more than its threshold in the relevant tax year. Exactly the threshold is not over it. Later years or an earlier mandate can still make MTD apply.
Does Making Tax Digital apply to landlords?
Yes, individuals with qualifying property income are included. A person with both property income and sole-trade turnover adds them together. For jointly owned property, use your share. Specialist, non-resident and overseas income cases should be checked with HMRC.
Does MTD apply to partnerships?
Partnerships themselves are not currently mandated; their timetable is to be announced. Individual partners may still be required to use MTD for their own sole-trade or property income. Partnership profit shares are excluded from the threshold but still need annual reporting where the individual uses MTD.
Can I get an exemption from MTD?
HMRC distinguishes automatic exemptions from exemptions needing an application. Digital exclusion or religious beliefs may support an application. Specialist and temporary exemptions have their own conditions. An application is not approval; check HMRC's current guidance.
If income falls below £20,000, can I stop using MTD?
HMRC lists qualifying income of £20,000 or less as an automatic exemption for entry, but it is not a universal immediate exit rule for existing users. HMRC describes opting out after income is below the relevant threshold for 3 consecutive years, or where an amended previous-year return makes you eligible. HMRC checks eligibility and the opt-out option must be selected in your tax account. Do not stop solely because this year's forecast is lower.
Are quarterly updates extra tax returns?
No. They are cumulative summaries of income and expense totals for each relevant self-employment and property business. You still submit an annual tax return through compatible software, including year-end adjustments and other taxable income.
Does this checker register me with HMRC?
No. It calculates the normal entry-stage result in your browser. It does not access your tax account, submit returns, sign you up or decide an exemption. Confirm your position with HMRC.
Related SoloCalc tools
Construction subcontractor? Use the CIS tax rebate calculator with gross pay before deductions and actual contractor statements.
- Estimate self-employed tax, NI and monthly tax set-aside — a profit-based calculation, unlike MTD's gross-income test.
- Check the separate VAT registration threshold — VAT uses taxable turnover and different timing rules.
- Compare sole trader and limited company take-home — a tax comparison, not a recommendation to incorporate.
Official sources & methodology
SoloCalc adds the entered gross income in pounds and pence, compares it strictly against the threshold for each return year, and shows the earliest normal-rule start. Unknown earlier years, estimates, missing returns, existing MTD use and possible exemptions prevent a confirmed conclusion. It never accesses your HMRC account.
- HMRC: if and when you need MTD
- HMRC: entry stages
- HMRC: qualifying income
- HMRC: exemptions
- 2026 Regulations: qualifying amounts
- 2026 Regulations: quarterly periods and deadlines
Last reviewed 23 October 2026. General guidance, not tax or legal advice. Confirm your position with HMRC or a qualified adviser before acting.