Making Tax Digital for Income Tax checker
Updated
Sole traders and landlords must use Making Tax Digital for Income Tax once their qualifying income, gross self-employment income plus gross property income, is more than £50,000 (from 6 April 2026), £30,000 (from 6 April 2027) or £20,000 (from 6 April 2028). Enter your income to see which applies.
Not financial advice. General information using HMRC rates for the current tax year (2026-27); your position may differ.
Gross income from all your sole trader businesses, before expenses.
Gross rents from UK and overseas property, before expenses. Your share if the property is jointly owned.
Not financial advice. General information using HMRC rates for the 2026-27 tax year; your position may differ. Reviewed 30 October 2026.
Your income against each threshold
Above the threshold line in a year means you join that April.
- Threshold
- Your qualifying income
Worked example
A sole trader with £35,000 of turnover who also lets a flat for £20,000 a year has qualifying income of £55,000. Making Tax Digital for Income Tax: applies since 6 april 2026. Expenses are not deducted, and employment income does not count.
How it works
- Qualifying income is your gross self-employment income plus your gross property income. Expenses are not taken off.
- Wages, pensions, dividends, savings interest and partnership income are not counted.
- Each phase looks at a Self Assessment return from earlier: the April start date uses the return for the tax year that ended the April before last.
- Once in, you keep digital records, send quarterly updates and file a final declaration instead of the usual return.
Which return HMRC looks at
HMRC does not use this year's income. For the phase starting 6 April 2026 it looks at the return for 2024-25; for 6 April 2027, 2025-26; for 6 April 2028, 2026-27. This checker assumes the income you enter is what those returns show. If your income has changed between years, check each return against its threshold. HMRC writes to people it expects to join.
What changes when you join
You keep your business and property records in software that works with Making Tax Digital, send a summary of income and expenses to HMRC every quarter, and finish the year with a final declaration instead of a normal Self Assessment return. Quarterly updates are summaries, not payments: when tax is due does not change.
The threshold is income, not profit
A landlord with high rents and a large mortgage, or a trader with thin margins, can be well over the threshold while making little profit. The test is gross receipts. Jointly owned property counts at your share.
Exemptions
Some people are exempt, for example if it is not reasonably practical for them to use digital tools because of age, disability, location or religion, and certain groups such as some trustees and non-resident companies are outside the scheme. You can apply to HMRC for an exemption.
Making Tax Digital for Income Tax phases
| From | Qualifying income more than | Measured on the return for | Status |
|---|---|---|---|
| 6 April 2026 | £50,000 | 2024-25 | In regulations |
| 6 April 2027 | £30,000 | 2025-26 | In regulations |
| 6 April 2028 | £20,000 | 2026-27 | Announced |
Sources: The Income Tax (Digital Requirements) Regulations 2021 (SI 2021/1076), as amended; Spring Statement 2025: threshold lowered to 20,000 from April 2028.
Want this worked out on your real numbers?
This page works on the figures you type. CoreFi can track your income, spending and tax position from the accounts you connect, on the same HMRC rates. It does not give tax advice.
Track your own numbersFrequently asked questions
Do I need Making Tax Digital for Income Tax?
If you are a sole trader or landlord and your qualifying income is more than £50,000, it applies from 6 April 2026. More than £30,000, from 6 April 2027. More than £20,000, from 6 April 2028.
Is it based on profit or turnover?
Turnover. Qualifying income is gross self-employment income plus gross property income, before any expenses.
Does my salary count?
No. Employment income, pensions, dividends and savings interest are not qualifying income, even though you still report them.
Is this financial advice?
No. It is general information on HMRC's published thresholds, and your position may differ. HMRC decides who must join.
More tax calculators
Not financial advice. This calculator gives general information using HMRC rates and thresholds for the 2026-27 tax year. It is not tax, legal or financial advice and does not take account of your circumstances; for advice, speak to a qualified accountant or tax adviser. CoreFi is a trading name of JG Core Ltd (company 16218779). Figures reviewed 30 October 2026.