Making Tax Digital, made plain.
From 6 April 2026, HMRC requires most self-employed people and landlords to keep digital records and send quarterly updates for Income Tax. Here's when it affects you — and a 20-second check.
20-second check
Does MTD apply to you?
Enter your gross annual income — before expenses. Only self-employment and UK property count toward the threshold.
Enter your income to see where you stand
Once you're in scope you stay in — even if your income drops in a later year.
PAYE wages, dividends, savings interest and pensions don't count toward this threshold — even if they push your total income higher. This is general guidance, not personal tax advice.
Three waves, each lowering the bar.
HMRC is phasing MTD ITSA in by income. Once you're in, you stay in — even if your income drops in a later year.
6 April 2026
Required if you earn over £50,000
The first wave. If your qualifying income is over £50,000, MTD for Income Tax applies for the 2026–27 tax year.
6 April 2027
Required if you earn over £30,000
The threshold lowers to £30,000. If you're between £30k and £50k, you have a full tax year to get set up.
6 April 2028
Required if you earn over £20,000
The threshold lowers again to £20,000, bringing most remaining sole traders and landlords into scope.
What income actually counts.
The threshold is your gross income — before expenses — from self-employment and UK property, combined. Other income doesn't move the needle.
Counts
Self-employment
Sole trader, freelance, CIS, gig work
UK property income
Rental income from UK buy-to-let
Doesn't count
- PAYE / employment wages
- Dividends
- Savings interest
- Pensions
When you're in scope, Varro has it handled.
Quarterly updates and the year-end final declaration, filed straight to HMRC. Recognised software, reference AV7K2D.