Who Needs to Use Making Tax Digital?

Every UK VAT-registered business must use MTD for VAT, regardless of turnover, since April 2022. There are no remaining exclusions based on turnover.

Self-employed sole traders with qualifying income over the relevant threshold must use MTD for Income Tax from their applicable start date. Qualifying income is your gross turnover before expenses, not your profit. For example, a sole trader with £62,000 of turnover but only £18,000 of profit is still in scope from April 2026, because the £50,000 test looks at turnover.

Landlords with UK or overseas property income are in scope once that income — combined with any self-employment income — exceeds the qualifying threshold. A landlord with £41,000 of gross rents and no other qualifying income joins from April 2027 (the £30,000 wave). Income from jointly-owned property counts as your share of the gross rent, and furnished holiday lets are included.

HMRC may grant exemptions on grounds of age, disability, religion or digital exclusion. Exemptions are not automatic and must be applied for.

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 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. A company director who also has personal sole-trader or rental income may still be in scope for MTD on that personal income.

You are in scope if you:

• are VAT-registered (MTD for VAT applies now, whatever your turnover); or
• are a sole trader and/or landlord whose combined gross self-employment and property income is over £50,000 (from April 2026), £30,000 (2027) or £20,000 (2028).

You are not (yet) in scope for MTD for Income Tax if you:

• earn only employment (PAYE) income, a pension, savings interest or dividends;
• have self-employment and property income below the current threshold;
• trade through a general partnership or a limited company (a start date for these has not been set); or
• hold an HMRC exemption.

The quickest way to check is to add up your gross self-employment turnover and gross property income for the most recent tax year, then compare the total against the threshold for each start date (£50,000 for 2026, £30,000 for 2027, £20,000 for 2028). If you are VAT-registered, MTD for VAT already applies now regardless of that figure. Our free tool walks you through it in a couple of minutes and gives you a personalised answer.

Check your MTD status now →