Do I need MTD? Making Tax Digital threshold checker
Quick answer
You need MTD for Income Tax if your qualifying income (gross self-employment and UK property income, before expenses) is over the threshold: £50,000 from 6 April 2026, £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Wages, pensions and dividends do not count.
Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords report to HMRC. Instead of one tax return a year, you keep digital records and send short updates every three months. Whether you need to do this, and from when, depends on one number: your qualifying income.
Enter your figures below to see your start date. It takes 30 seconds, and nothing you type leaves your device. Underneath, we explain exactly how the rules work, with examples.
Do I need MTD for Income Tax? Free checker
Takes 30 seconds. Nothing you type leaves your device.
Based on GOV.UK rules checked 13 October 2026: check if you're eligible and work out your qualifying income. Employment (PAYE) wages, pensions, dividends and partnership profit shares do not count. This is a guide, not tax advice.
What counts as qualifying income for MTD?
Qualifying income is your total gross income from self-employment and UK property in a tax year (GOV.UK). "Gross" means before you take off any expenses. For a sole trader, that's your turnover (all your sales). For a landlord, it's all the rent you receive.
What counts
- Your sales or fees as a sole trader, before costs
- Rent from UK property, before costs such as repairs, letting agent fees or mortgage interest
- Your share of rent from property you own jointly with someone else
- Both added together, if you have a business and a rental
What does not count
- Wages from a PAYE job
- Dividends
- The State Pension and private pensions
- Your share of profit from a partnership
What about jointly owned property?
If you own a rental property with a partner or relative, only your share of the rent counts towards your qualifying income. If a flat brings in £24,000 a year and you own half, your share is £12,000. Each owner checks their own total separately.
Worked examples: who needs MTD?
These three people are illustrations, not real customers. We assume the figures are for the 2025 to 2026 tax year, which is the year tested for the April 2027 stage.
| Person | Income | Qualifying income | Result |
|---|---|---|---|
| Priya, mobile hairdresser with a buy-to-let | £24,000 sales, £9,000 rent | £33,000 | Over £30,000, so MTD from 6 April 2027 |
| Tom, employed engineer who lets a flat | £45,000 salary, £12,000 rent | £12,000 (salary does not count) | Not in MTD at current thresholds |
| Jo, part-time gardener who co-owns a house | £14,000 sales, half of £36,000 rent | £14,000 + £18,000 = £32,000 | Over £30,000, so MTD from 6 April 2027 |
Notice that Jo's profit after expenses might be much lower than £32,000. It doesn't matter. MTD looks at income before costs.
What are the MTD thresholds, and which year is tested?
Each stage looks back at an earlier tax year's figures (GOV.UK):
| Qualifying income over | Tax year tested | You must use MTD from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
HMRC checks your qualifying income from your Self Assessment return each year, and writes to people who are in scope. Around 1,077,000 more sole traders and landlords are expected to join from April 2027 (GOV.UK).
Can I get an exemption from MTD?
Some people are exempt automatically, so you don't need to apply (GOV.UK). These include:
- partnerships (for now)
- anyone with qualifying income of £20,000 or less
- people who did not have a National Insurance number before the start of the tax year
- trustees, personal representatives and Lloyd's members, plus a few others
What is digital exclusion?
You can apply for an exemption if it's not reasonable for you to use software. HMRC accepts reasons such as age, health, disability, religious belief, or having no internet access where you live or work. HMRC does not accept "I've never used software", "I don't have many records" or "it costs too much".
If cost is your worry, there are free options. Clear Books, Sage Sole Trader Free and Zoho Books Free all cover MTD for simple affairs. See our best free MTD software guide.
What should I do next?
- Note your start date from the checker above.
- Read the guide that fits you: MTD for sole traders or MTD for landlords.
- Pick software a few months before your start date, so you can practise. Our best MTD software list is a good place to begin.
- Sign up for MTD using HMRC's service (GOV.UK).
- Talk to your accountant if you have one. They may already include software in their fee.
Frequently asked questions
What is the MTD threshold for 2027?
From 6 April 2027 you must use MTD for Income Tax if your qualifying income was over £30,000 in the 2025 to 2026 tax year. HMRC estimates around 1,077,000 more sole traders and landlords will join at this stage.
Is the MTD threshold based on turnover or profit?
Turnover. Qualifying income is your gross income from self-employment and property, before you take off any expenses. So a sole trader with £34,000 of sales and £15,000 of costs is above the £30,000 threshold.
Does my salary count towards the MTD threshold?
No. Income from a PAYE job does not count, and nor do dividends, the State Pension or private pensions. Only self-employment and property income is added up.
Do I need MTD if I'm in a partnership?
Not for now. Partnerships are exempt at the moment, and your share of partnership profit does not count towards qualifying income. If you also have sole trader or rental income, that part still counts.
What happens if I'm exactly on £30,000?
The rules say over £30,000, so exactly £30,000 is not over the threshold for the 2027 stage. You would still need to check the next stage, which applies to qualifying income over £20,000 from 6 April 2028.
Can I get an exemption from MTD?
Some people are exempt automatically, for example trustees and anyone with qualifying income of £20,000 or less. Others can apply as digitally excluded because of age, health, disability, religious belief or no internet access. Cost or never having used software are not accepted reasons.
Will HMRC tell me if I need MTD?
HMRC checks your qualifying income from your Self Assessment return each year and writes to people who are in scope. Don't wait for a letter, though. Use this checker, then read our MTD for sole traders guide or MTD for landlords guide.
This page is general information, not personal tax, legal or financial advice. Tax rules can change and your situation may differ. For advice on your own affairs, speak to a qualified accountant or tax adviser, or check GOV.UK.