MTD FAQs
The short answers below use the same thresholds as the checker. They are general information, not a decision on your return.
Key takeaways
- Wages do not count.
- Three start dates, three tax years.
- Software is not ranked.
- Renters' Rights is England only.
Do I need Making Tax Digital?
You need it when your qualifying income for the relevant tax year is over the threshold. Over £50,000 in 2024 to 2025 means 6 April 2026. Over £30,000 in 2025 to 2026 means 6 April 2027. Over £20,000 in 2026 to 2027 means 6 April 2028.
Do wages count?
No. GOV.UK lists employment income among the amounts that do not count toward qualifying income. £45,000 of wages and £6,000 of rent is £6,000 for this test.
Which software is best?
This site does not say. No product has been hands-on tested. Use HMRC’s compatible software list, and read the software page.
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.