Are you affected by Making Tax Digital?
Answer two quick questions to find out whether MTD for Income Tax applies to you — and from which tax year. Free, instant, no sign-up.
1. Do you earn from self-employment or property (rental)?
2. Your total gross income from those sources (before expenses)
You’re in scope from April 2027
Your income falls in the £30,000–£50,000 band, so MTD for Income Tax applies to you from April 2027. Start getting ready now and it’s effortless.
This is a guide based on current HMRC thresholds (qualifying income = gross self-employment + property income, before expenses). It isn't personal tax advice — ask our team if you're unsure.
What is Making Tax Digital for Income Tax?
The biggest change to personal tax in a generation — here's what it means in plain English.
Over £50,000 — mandatory
Self-employed people and landlords with qualifying income above £50,000 must keep digital records and send quarterly updates to HMRC through compatible software, plus a final declaration.
Over £30,000
The threshold lowers to £30,000, bringing many more sole traders and landlords into MTD.
Over £20,000
The threshold lowers again to £20,000, extending digital quarterly reporting to most Self Assessment taxpayers.
What counts as qualifying income? +
Qualifying income is your total gross income from self-employment and property (rent) for the tax year — before deducting any expenses. Other income such as employment (PAYE), dividends or savings isn't counted towards the MTD threshold.
When does MTD for Income Tax start? +
It becomes mandatory from 6 April 2026 for those with qualifying income over £50,000, then £30,000 from April 2027 and £20,000 from April 2028.
What will I actually have to do? +
Keep digital records of your income and expenses, send HMRC a summary every quarter through compatible software, and submit a final declaration after the tax year ends. Basetax handles all of this for you.
Does MTD replace my Self Assessment? +
Yes — once you're in MTD for Income Tax, the quarterly updates plus the final declaration replace the annual Self Assessment return for that income.
Get MTD-ready, free.
Start tracking your income digitally today so the 2026 switch is effortless. Pay only when you file.