TaxYearSheetsLast checked by hand against GOV.UK: 10 October 2026. Sources are linked in each section. HMRC updates its guidance, so always check the source before you act.
The three thresholds
| Qualifying income over | In tax year | Use MTD from |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
So if your income was under £50,000 in 2024/25, you didn't need MTD from April 2026 – but if it is over £30,000 in 2025/26 (6 April 2025 to 5 April 2026), you'll need it from April 2027.
Source: GOV.UK – Find out if and when you need to use MTD for Income Tax.
It's turnover, not profit
Qualifying income is your total income from self-employment and property, before expenses, added together. It's based on the tax return for the earlier year.
Example: £20,000 of rent and £14,000 of self-employed sales gives qualifying income of £34,000 – over £30,000 – even if your profit after expenses is much lower.
Wages (PAYE), pensions, dividends and your share of partnership profit don't count. See what counts as qualifying income.
What happens next
- HMRC checks your Self Assessment return each year and writes to you if your income is over the threshold. If you don't get a letter, GOV.UK says it's still your responsibility to check and sign up.
- You can join voluntarily before you have to.
- Once you're using MTD, if your qualifying income drops below the threshold for 3 tax years in a row, you can choose to opt out.
- Some people are exempt – for example if qualifying income is £20,000 or less, or if you're digitally excluded (you apply to HMRC for that one).
Sources: GOV.UK – Find out if and when you need to use MTD · GOV.UK – Work out your qualifying income · GOV.UK – Exemptions from MTD for Income Tax.
Check your own start date
Enter your qualifying income for each year in the free MTD checker to see if and when you need MTD, and your quarterly deadlines.
Questions
Is the MTD threshold based on profit or turnover?
Turnover. Qualifying income is your total income from self-employment and property before expenses, so someone with £34,000 of sales and £16,000 of costs has £34,000 of qualifying income, not £18,000.
My income is £35,000. When do I need MTD?
If your qualifying income for the 2025 to 2026 tax year is over £30,000, GOV.UK says you will need to use MTD for Income Tax from 6 April 2027.
What if my qualifying income is £20,000 or less?
GOV.UK lists qualifying income of £20,000 or less as an automatic exemption, unless your circumstances change. You still send a Self Assessment tax return as normal.