Making Tax Digital for Income Tax checker, 2026/27

How this is calculated

Making Tax Digital for Income Tax uses your gross qualifying income, self-employment turnover plus gross property income, added together before any expenses are deducted, based on the figures reported in your tax return for the relevant look-back year.

HMRC is phasing in the requirement: those with qualifying income above £50,000 must comply from 6 April 2026, based on their 2024/25 tax return; the threshold drops to £30,000 from 6 April 2027, and a further reduction to £20,000 has been announced for 6 April 2028, though this should be checked against the latest HMRC guidance nearer the time.

This checker simply compares your entered income against the current published thresholds and tells you the phase you fall into, but it cannot account for exemptions HMRC may grant, for example on grounds of digital exclusion.

What MTD for Income Tax actually requires

If mandated, you must keep digital records of your business and property income and expenses using compatible software, send a quarterly summary update to HMRC for each source of income, and submit a final declaration after the tax year end, replacing the current Self Assessment return process for those income sources.

Quarterly updates are cumulative summaries, not full tax calculations, but they do require more frequent, disciplined record keeping than the traditional once-a-year approach most sole traders and landlords are used to.

Getting ready ahead of your mandation date

Moving to compatible digital bookkeeping software well before your mandation date, rather than in the final months, avoids a rushed transition and gives you time to iron out how expenses, mileage and property costs are recorded quarter by quarter.

If you are close to a threshold, keep an eye on your qualifying income each year, since a good year can bring your mandation date forward, and it is based on a look-back year rather than the current year's income.

What counts as qualifying income for MTD for Income Tax?

Gross turnover from all self-employments plus gross rental income from all UK properties, added together before deducting any expenses. It is based on the income reported on your Self Assessment return for the relevant look-back tax year, not the current year.

Do limited company directors need to worry about MTD for Income Tax?

Not for their salary or dividends, which are not qualifying income. It only applies to income from self-employment (sole trade or partnership trading income reported personally) and UK property, so a director with only salary and dividends from their company is not affected by these rules.

What happens if my income drops below the threshold after I'm mandated?

Once mandated, HMRC's published approach allows you to stop only if your qualifying income falls below the threshold for three consecutive years, so a single lower-income year is unlikely to remove the obligation immediately; check current HMRC guidance for the exact exit rules.

Do I still file a Self Assessment return under MTD for Income Tax?

The quarterly updates and final declaration replace the need for a traditional Self Assessment return for your qualifying trades and property income, though you may still need to declare other income, such as dividends or capital gains, through the final declaration process.