Whether MTD for Income Tax applies to you comes down to one number: your gross qualifying income. Here is what counts, where the thresholds sit, and a quick checker to see when the rules reach you.
| From | Who comes into scope | Qualifying income | First quarterly update |
|---|---|---|---|
| 6 April 2026 | Sole traders & landlords Live now for the highest earners | Over £50,000 | Due before 7 August 2026 |
| 6 April 2027 | Sole traders & landlords Threshold steps down | Over £30,000 | Due before 7 August 2027 |
| 6 April 2028 | Sole traders & landlords Threshold steps down again | Over £20,000 | Due before 7 August 2028 |
Qualifying income is your gross self-employment and property income added together, before expenses, not your profit. Corporation Tax and partnerships are not in scope yet. Always check your own position with HMRC's official tool at gov.uk.
Two things catch people out. First, the threshold looks at your gross income, the money coming in before you take off any expenses, not your profit. Second, you have to add your self-employment and property income together. Either point can pull you into MTD sooner than you expect.
A £5,000 loss-making trade with £48,000 of rent is not "under the threshold". The gross figures add up to over £50,000, so MTD for Income Tax applies.
A self-employed plumber turning over £60,000. Over £50,000, so MTD for Income Tax applies from April 2026.
Rental income of £35,000 and no trade. Between £30,000 and £50,000, so MTD applies from April 2027.
Combined gross income of £43,000. Added together it is over £30,000, so MTD applies from April 2027.
Answer two questions for an instant, plain-English steer. This is a guide, not formal advice, always confirm with HMRC's official tool.
Use HMRC's official service to confirm: check if you need to use MTD for Income Tax.
Keep digital records, file quarterly updates and submit your final declaration, all in one place. Free for sole traders, with no filing paywall.
Whether MTD reaches you in 2026, 2027 or 2028, starting now means tidy records and no last-minute scramble. Clear Books is free for sole traders.
