Making Tax Digital
Making Tax Digital thresholds and start dates
When Making Tax Digital for Income Tax starts depends on your qualifying income in an earlier tax year: over £50,000 in 2024–25, over £30,000 in 2025–26 or over £20,000 in 2026–27.
When it starts
Making Tax Digital (MTD) for Income Tax applies to sole traders and landlords registered for Self Assessment. Your start date depends on your qualifying income in an earlier tax year:
Scroll across the table to read every column.
| Start date | Qualifying income over | Tested on |
|---|---|---|
| 6 April 2026 | £50,000 | 2024–25 return |
| 6 April 2027 | £30,000 | 2025–26 return |
| 6 April 2028 | £20,000 | 2026–27 return |
What counts as qualifying income
Qualifying income is your self-employment and property income added together, before expenses. HMRC’s own example: £27,000 from self-employment plus £25,000 of rent is £52,000, over the first threshold.
- Count your share of jointly owned property income.
- Don’t count employment income, dividends, pensions or your share of partnership profit.
- Count the full amount earned, not what reached your bank after fees or deductions.
That last point catches online sellers and CIS subcontractors in particular.
How HMRC checks
HMRC reviews your Self Assessment return each year and writes to you if you are over the threshold. If no letter arrives, it is still your responsibility to check and sign up. If you have just started a business, you file one return first and HMRC checks that.
Once you are in, you can opt out only if your qualifying income stays below the threshold for three tax years in a row.
Exemptions
Some exemptions are automatic: for example, if your qualifying income is £20,000 or less. Others you apply for, such as being digitally excluded, where it is not reasonable for you to use compatible software. Apply before your start date. If you are exempt, you still file a Self Assessment return.
What to do next
- Find the turnover figures on your last return, for both self-employment and property.
- Check them against the threshold for the next April.
- If you are in, choose software, sign up and keep digital records from the start date. Read how quarterly updates work.
We set up and keep the records for sole traders and landlords. See bookkeeping and reconciliation.
About Andrew
Andrew Ramsell runs the accounting and finance work for sole traders, landlords and limited companies, including their Making Tax Digital updates, and builds the software that takes recurring work off their hands. He is an AAT-qualified accountant.
Sources
HMRC guidance on GOV.UK, checked 10 October 2026:
Common questions
Is the MTD threshold based on profit or turnover?
Turnover. Qualifying income is self-employment and property income before expenses.
Do I add my rental income to my self-employed income?
Yes. Both are added together and tested against one threshold.
Which tax year decides whether I start in April 2027?
Your 2025–26 return. If your qualifying income on it is over £30,000, you start on 6 April 2027.
Can I leave MTD if my income falls?
Only after your qualifying income has been below the threshold for three tax years in a row.
Talk to Andrew
The first conversation is free. Email andrew@ingoodorder.co.uk with your income sources and the start date you think applies.
Want it set up for you? MTD-ready in a week is a fixed-fee setup.
Opens a short enquiry form. Nothing is sent until you press Send enquiry.
Prefer email? Write to andrew@ingoodorder.co.uk.
Know a sole trader or landlord who’d benefit? Introduce them and I’ll pay you £50 when they sign up.