Do I need Making Tax Digital? Work out your start date in two minutes
Add up the right income, compare it with three thresholds and you know when Making Tax Digital starts for you. With examples for riders, cleaners, people with a PAYE job and landlords.
Step 1: add up your qualifying income
Take one tax year (6 April to 5 April) and add together:
- your turnover from self-employment: everything you were paid, before taking off expenses;
- your UK rental income, before expenses, if you are a landlord.
Leave out wages from a PAYE job, pensions (State or private) and dividends, even from your own company. If you are in a partnership, your share of the partnership's profit does not count either.
HMRC works this out from the Self Assessment tax return you sent for that year.
Step 2: compare it with the thresholds
| If your qualifying income was | in | MTD starts |
|---|---|---|
| over £50,000 | 2024-25 | 6 April 2026 |
| over £30,000 | 2025-26 | 6 April 2027 |
| over £20,000 | 2026-27 | 6 April 2028 |
| £20,000 or less | you are exempt |
Use the first row that applies to you.
Examples
Ana, delivery rider. In 2025-26 she took £34,000 from deliveries and spent £11,000 on fuel, insurance and her phone. Her profit is £23,000, but her qualifying income is £34,000, over £30,000. She starts on 6 April 2027.
Luis, cleaner. He invoiced £18,500 in 2025-26 and expects about the same in 2026-27. That is £20,000 or less, so as things stand he does not need MTD. If his turnover goes over £20,000 in 2026-27, he starts in April 2028.
María, nurse with a side business. She earns £32,000 from her PAYE job and £9,000 from her own beauty treatments. Only the £9,000 counts, so she is exempt for now.
Peter, plumber and landlord. In 2025-26 he invoiced £19,000 and his flat brought in £14,400 rent. Together that is £33,400, over £30,000. He starts on 6 April 2027, for both his business and his flat.
Common questions
My profit is low. Does that help? No. The test uses turnover before expenses, not profit.
I started this year. HMRC looks at the tax return for the year in the table. If you had not started yet, that year cannot bring you in; a later year might.
Can I start early? Yes, you can sign up voluntarily. While you volunteer, late quarterly updates do not get penalties.
I am under the threshold this year but might go over. Keep an eye on your running total. SoleLog shows the date MTD starts for you from what you log, and updates it as your income grows.
What to do now
If MTD starts for you in 2027 or 2028, the easiest thing is to start keeping digital records now, so the first quarterly update is just a download. Read what changes with Making Tax Digital and how to do it without expensive software.
Sources
This article explains HMRC’s published rules in plain words; it is not tax advice. Rules change: check the GOV.UK pages linked above, and ask an accountant if your situation is unusual.