Do I need Making Tax Digital?
You need it when your qualifying income for a named tax year is over the threshold for that year. One typed total is not a substitute for the return HMRC reviews.
Key takeaways
- Gross income, before expenses. Not profit.
- Add self-employment and property. Leave wages out.
- Each start date looks at a different tax year.
- HMRC writes to you when a reviewed return is over the threshold.
The test
If qualifying income for 2024 to 2025 was over £50,000, you should have started on 6 April 2026. If qualifying income for 2025 to 2026 is over £30,000, you need to use it from 6 April 2027. If qualifying income for 2026 to 2027 is over £20,000, the start date is 6 April 2028.
HMRC reviews the Self Assessment return and writes when the income is over the threshold for that year. The official tool asks about those three tax years separately.
If income changes year to year
A high year and a low year are not averaged on this site. Each threshold looks at its own tax year. Someone under the line in 2024 to 2025 can still be over the 2025 to 2026 line.
If the figure is under every threshold that applies to the years you have, you are not currently in scope on these published rules. Check again when the next return is done.
Joint owners
This site does not yet state a joint-ownership rule. The share of property income that belongs on each person’s return is a point to check on GOV.UK or with an accountant before anyone relies on a split typed into the checker.
Sources
- GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax
- GOV.UK: Use Making Tax Digital for Income Tax
- GOV.UK: Get ready for MTD, an agent toolkit
- GOV.UK: Reduction of the mandation threshold from £30,000 to £20,000 from April 2028
- GOV.UK: Find software that's compatible with Making Tax Digital for Income Tax
- GOV.UK: Repossessing your privately rented property after 1 May 2026
- GOV.UK: Renting out your property, guidance for landlords and letting agents
Reviewed by
Christopher Norton
UK Property Tax & Making Tax Digital Specialist
FCCA and Chartered Tax Adviser. Director of Norton and Sons Associates Property Tax Firm. Property tax and MTD compliance since 2005.