"Do I actually have to do this?" is the first Making Tax Digital question everyone asks — and the answer hides in one term: qualifying income. Get that number right and your MTD start date falls out automatically. Get it wrong and you either panic unnecessarily or, worse, miss a mandation date HMRC believes you should have known about.
This guide pins down exactly how the thresholds work, with worked examples for the awkward cases — mixed income, joint property, new businesses — plus who can claim exemption.
The Timeline
| Mandation date | Qualifying income over | Measured from | Roughly who |
|---|---|---|---|
| 6 April 2026 | £50,000 | 2024–25 return | ~900k sole traders & landlords |
| 6 April 2027 | £30,000 | 2025–26 return | ~1.5m more |
| 6 April 2028 | £20,000 (announced) | 2026–27 return | most of the remainder |
Partnerships are not currently mandated. The confirmed individual threshold is more than £20,000 from 6 April 2028; qualifying income of exactly £20,000 or less is automatically exempt under the current rules.
What Counts as Qualifying Income
- Included: gross self-employment turnover (all trades combined) and gross property income (your beneficial share) — before expenses, allowances or reliefs.
- Not included: PAYE salary, dividends, pension income, savings interest, capital gains, partnership profit shares.
Because it is gross, a landlord with high rent but thin margins, or a tradesperson with heavy materials costs, can be mandated while making modest profit. The test is turnover, full stop.
Worked Examples
| Situation (2024–25 figures) | Qualifying income | Mandated from |
|---|---|---|
| Freelance designer, £62,000 turnover | £62,000 | April 2026 |
| Landlord, £35,000 rent + consultant, £20,000 fees | £55,000 (combined) | April 2026 |
| Employee on £80,000 + £12,000 freelance | £12,000 (salary excluded) | Not mandated under the published waves |
| Couple, joint rental income £70,000 (50/50) | £35,000 each | April 2027 (each) |
| Uber driver £24,000 + Deliveroo £4,000 | £28,000 (trades combined) | April 2028 wave |
Exemptions and Edge Cases
- Digitally excluded: if age, disability, location (no reliable internet) or religious beliefs make software use impractical, you can apply to HMRC for exemption — it is not automatic; you must apply and HMRC must agree.
- Exemptions: partnerships are not currently mandated, and HMRC lists further automatic, temporary and application-based exemptions. Check the official exemption guidance for your circumstances.
- New businesses: you do not have to start mandatory MTD Income Tax until after you have submitted your first Self Assessment return.
- Voluntary sign-up: you can join MTD early, which some do to spread the learning curve before their mandation date.
What to Do With Your Answer
If you are in a wave: choose a functional compatible software setup and establish a routine for creating and storing the required records. Converting bank statements into categorised spreadsheets can reduce typing and prepare source data for review, but it is only one input to that workflow; see the digital record-keeping rules and our guides for landlords and sole traders.
If you are not (yet): diarise a check each January against your latest return — the thresholds are falling, and the 2027 and 2028 waves will catch most people reading this page.
Mandated? Prepare Your Statement Data
Upload a supported UK statement, then review every extracted row and suggested category against the source before importing relevant records into compatible software.
Start 7-day trial →Frequently Asked Questions
Is the threshold based on profit or turnover?
Turnover — gross income before any expenses. A landlord with £52,000 of rent and £30,000 of mortgage interest and repairs is still over the £50,000 line, because the test ignores costs entirely.
Do multiple income sources combine?
Yes, across self-employment and property: all trades plus your share of gross rents are added together for the test. Employment income, dividends, pensions and interest never count.
How does HMRC know my qualifying income?
From your filed Self Assessment returns: 2024–25 income determines the April 2026 wave, 2025–26 determines April 2027, and 2026–27 determines April 2028. HMRC may write to taxpayers it identifies, but you should check your own position.
What if my income hovers around the line?
Your HMRC online account may offer an opt-out when you are eligible, including after qualifying income stays below the applicable threshold for three consecutive tax years. An amended earlier return can also change your position. Check HMRC's current opt-out guidance before acting.
Can I be exempt because I am not comfortable with technology?
Digital exclusion can apply where it is not reasonable or practical to use compatible software because of age, health, disability, religious beliefs, lack of usable internet or another reason HMRC accepts. Application-based exemptions only apply when HMRC confirms them.
Last updated: 9 July 2026. This guide explains the Making Tax Digital rules as published by HMRC — always check GOV.UK for the latest official guidance. Read our digital record-keeping guide or browse all blog posts.