Does MTD apply to me?

• You’re a sole trader and/or a landlord, and
• Your qualifying income (gross self-employment turnover plus gross rental income, before expenses) is over £50,000

If both are true, you’ve been in the first MTD for Income Tax wave since 6 April 2026. The first quarterly update was due 7 August 2026 — if you haven't registered yet, you're overdue and should act now rather than wait for the next one.

What counts as qualifying income →

• Your qualifying income is under £50,000 — you'll join in 2027 (£30,000) or 2028 (£20,000)
• You trade through a limited company — MTD for Income Tax doesn’t apply to companies
• Your only income is employment or pensions — that doesn’t count as qualifying income

Set up your HMRC personal tax account and Self Assessment (only you can do this), register for MTD, choose compatible software, and file your next quarterly update. We can register and file for you if you’d rather not do it yourself — including catching up an overdue update.

See the 3 steps to file your MTD →

Free MTD eligibility check →

Because the test is on gross income, not profit, it catches more people than expected. A few examples:

• Plumber, £62,000 turnover, £20,000 profit — in scope from April 2026 (the £50,000 test looks at turnover).
• Landlord, £41,000 gross rent, no other income — not in the 2026 wave, but joins in April 2027 (the £30,000 threshold).
• Freelancer earning £28,000 plus £15,000 rent — combined £43,000, so in scope from April 2027.
• Employee on £70,000 PAYE with £3,000 of side income — not in scope; PAYE does not count and the side income is well under the threshold.
• Company director paid via salary and dividends — the company’s income is not covered by MTD for Income Tax; only any personal sole-trader or rental income counts.

If you have more than one trade, or a trade and property, you add the gross figures together for the threshold, then report each source separately. For jointly owned property, it is your share of the gross rent that counts. If you are close to a threshold, it is worth checking carefully — a small amount of extra income can bring you in a year earlier.