Quick answer:
You’re affected by MTD for Income Tax if you’re a sole trader or landlord whose gross income from self-employment and property combined was over £50,000 in 2024/25 (from April 2026), over £30,000 (from April 2027), or over £20,000 (from April 2028). To understand the figure you’re testing, read what counts as qualifying income. For an official check, HMRC provides its own interactive eligibility tool on GOV.UK, which is a useful second opinion alongside ours.
The 60-second check
- Add your gross self-employment income and gross rental income for the relevant tax year.
- Compare the total to the threshold for each phase (£50k / £30k / £20k).
- If you’re over the threshold for a phase, you must use MTD from that phase’s April start date.
Who is in scope
- Sole traders (self-employed) above the threshold.
- Landlords with rental income above the threshold.
- People who are both ,incomes are combined to test the threshold.
Who is not (yet) in scope
- Those below the current phase’s threshold (though lower thresholds arrive later).
- People with only employment or other non-qualifying income.
- Those who are digitally excluded or otherwise exempt.
If you’re close to a threshold
Prepare as though you’ll be included. Moving to digital records early costs little and removes the risk of a rushed switch when a lower threshold reaches you. For the full rules and deadlines, see our 2026 MTD guide.
How CleanBooksAI helps you check and prepare
CleanBooksAI shows your income in real time against the MTD thresholds and gets you record-ready before your start date ,so you’re never caught out.
