Verified against gov.uk · 29 August 2026
MTD thresholds: which year is actually tested
Making Tax Digital for Income Tax tests your qualifying income in an earlier tax year, and begins two years after that year. The threshold is not keyed to the year MTD starts.
| Tax year assessed | Qualifying income | MTD begins |
|---|---|---|
| 2024-25 | over £50,000 | 6 April 2026 |
| 2025-26 | over £30,000 | 6 April 2027 |
| 2026-27 | over £20,000 | 6 April 2028 |
The mistake almost everyone makes
The common error is to compare a year's income against the threshold announced for that same year. Under that reading, a landlord with £40,000 in 2025-26 is below the £50,000 figure associated with 2026 and concludes they are outside MTD.
They are not. £40,000 in 2025-26 exceeds the £30,000 test for 2025-26, which brings them into MTD from 6 April 2027.
What counts as qualifying income
Gross income from self-employment and property, before expenses. It is a turnover test rather than a profit test, which is why a landlord with a large mortgage and little profit can still be brought in.
Crossing an earlier threshold pulls you in sooner
The thresholds fall at each phase, so the earliest year in which you exceed a threshold is the one that determines your start date. Exceeding £50,000 in 2024-25 starts you in April 2026 regardless of what happens afterwards.
Guidance on published rules, not tax advice, and thresholds have moved before. Check your own figure.
Quarterly records, kept as you go.
PropFlow maintains cumulative quarterly digital records. Your accountant files them.