Definition: Making Tax Digital for Income Tax is HMRC's programme that replaces the annual Self Assessment routine for sole traders and landlords with digital record-keeping and quarterly income-and-expenses updates sent through MTD-compatible software, followed by a final declaration after the tax year ends. The quarterly updates are summaries, not extra tax returns.
Add your gross income from self-employment and from property together — before expenses, exactly as HMRC measures it — and see your start date.
Checking a VAT figure instead? Use the full UK VAT Calculator — it's free.
| MTD for VAT | MTD for Income Tax | |
|---|---|---|
| Who it covers | VAT-registered businesses | Sole traders and landlords |
| Threshold | £90,000 taxable turnover (VAT registration) | Qualifying income over £50,000 from April 2026; over £30,000 from 6 April 2027; over £20,000 planned from April 2028 |
| What counts | VAT-taxable sales | Gross income from self-employment plus property, before expenses or allowances are deducted |
| What you send | VAT returns (usually quarterly) through MTD software | Quarterly income-and-expenses updates through MTD software, plus a final declaration |
| Status | Already mandatory for virtually all VAT-registered businesses | Phasing in — the £30,000 group joins on 6 April 2027, an estimated 1,077,000 extra taxpayers |
Already filing through MTD for VAT? Our VAT return guide explains how those quarterly duties already work in practice — and if you need the rate itself, see the current VAT rate in the UK.
Amira is a self-employed plumber. In her 2025/26 figures she has:
£33,000 is over £30,000, so from 6 April 2027 Amira must use MTD for Income Tax — even though neither income source passes £30,000 on its own, because HMRC adds self-employment and property income together and uses the gross figure before expenses.
Her VAT position is separate: her plumbing turnover is well below the £90,000 VAT registration threshold, so she is not VAT-registered and MTD for VAT does not apply to her unless she registers voluntarily or her taxable turnover grows past £90,000 in any rolling 12 months.
Try it yourself: if you are checking a VAT figure rather than an income figure, use the free calculator on our homepage to add or remove VAT instantly, and see our guide to the VAT registration threshold for how the £90,000 test works.
Note: exemptions exist, including for people who are digitally excluded — check the GOV.UK guidance if keeping digital records is genuinely not possible for you.
This guide is general information, not tax advice. Thresholds and start dates are as announced by HMRC; if your income is near a threshold or comes from several sources, check the GOV.UK guidance or take advice for your own position.
Is MTD for Income Tax the same as MTD for VAT?
No. They are two separate HMRC systems with different thresholds, different returns and different software duties. Being set up for MTD for VAT does not sign you up for MTD for Income Tax, and the other way round.
Are the quarterly updates extra tax returns?
No. HMRC describes them as short summaries of your income and expenses for the quarter. You still complete a final declaration after the tax year ends.
I earn £28,000 from self-employment and £5,000 in rent. Am I in?
Yes, from 6 April 2027. The test uses your combined gross income (£33,000 here), not each source separately, and it is measured before expenses.
Does the £30,000 threshold replace the £90,000 VAT threshold?
No. They are unrelated tests for different taxes. £90,000 is the VAT registration threshold on taxable turnover; £30,000 is the MTD for Income Tax threshold on qualifying income from April 2027.
Can my accountant or agent sign me up?
Yes. HMRC allows tax agents to sign up clients through GOV.UK.
Add or remove VAT on any figure in seconds with our free UK VAT calculator.
Related guides: VAT Registration Threshold: The £90,000 Limit Explained · VAT Return: The 9 Boxes Explained · Current VAT Rate in the UK