Current timetable: MTD for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The threshold falls to over £30,000 from April 2027 and over £20,000 from April 2028.
MTD eligibility flowchart
Over £30,000 on 2025/26 return → 6 Apr 2027
Over £20,000 on 2026/27 return → 6 Apr 2028
What is qualifying income?
Qualifying income is broadly your gross income from self-employment and property combined, before deducting expenses. This is important: the test is not based on taxable profit.
What do you have to do under MTD?
- Use compatible software.
- Create and maintain digital records of business income and expenses.
- Send quarterly updates to HMRC.
- Complete the year-end tax return process through compatible software.
2026/27 quarterly update dates
For businesses using standard update periods from 6 April 2026, HMRC's first four quarterly update deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. Different choices and circumstances can affect periods, so software setup matters.
What if I have two businesses or rental income?
The threshold looks at combined qualifying income from self-employment and property. Separate businesses may also create separate digital-record and update requirements.
Can my accountant handle MTD?
An authorised agent can help with setup, software, digital records and submissions. You still need a workable way of getting business information into the digital records throughout the year.
Frequently asked questions
Is the £50,000 threshold profit or turnover?
It is based on qualifying gross income before expenses, not taxable profit.
I earn £35,000 as a sole trader. Do I need MTD now?
Not solely on that figure for April 2026, but the threshold reduces to over £30,000 from April 2027 based on the relevant earlier tax return.
Does PAYE salary count towards qualifying income?
The MTD qualifying-income test focuses on self-employment and property income, not all sources of personal income.