MTD for VAT — All VAT-Registered Businesses
Every UK VAT-registered business must use MTD for VAT, regardless of turnover, since April 2022. There are no remaining exclusions based on turnover.
MTD for Income Tax — Sole Traders
Self-employed sole traders with qualifying income over the relevant threshold must use MTD for Income Tax from their applicable start date.
MTD for Income Tax — Landlords
Landlords with UK property income that, combined with any self-employment income, exceeds the qualifying income threshold are within MTD for Income Tax.
Who Is Currently Exempt from MTD
HMRC may grant exemptions on grounds of age, disability, religion or digital exclusion. Exemptions are not automatic and must be applied for.
Partnerships and MTD
General partnerships will be brought into MTD for Income Tax at a later date to be confirmed by HMRC. They are not in scope for the April 2026 start.
Limited Companies and MTD
Limited companies are not currently within scope for MTD for Income Tax. HMRC has previously consulted on extending MTD to limited companies via MTD for Corporation Tax, but no mandatory start date has been confirmed.