Making Tax Digital for Income Tax

The three income thresholds

HMRC’s rules use income more than each threshold. Exactly £50,000, £30,000 or £20,000 does not exceed that phase’s threshold.

More than £50,000 in 2024–25

Standard phase from 6 April 2026, subject to eligibility and exemptions.

More than £30,000 in 2025–26

Standard phase from 6 April 2027, subject to eligibility and exemptions.

More than £20,000 in 2026–27

Standard phase from 6 April 2028, subject to eligibility and exemptions.

Source: HMRC’s phase and eligibility guidance.

Add qualifying self-employment and property income together. PAYE employment, dividends and an individual partner’s share of partnership profit do not count towards this total. Check HMRC’s full qualifying-income definition.

Special cases and exemptions

Budget 2026 announces deferral of MTD Income Tax for several taxpayer groups until further notice. It does not identify those groups in its MTD paragraph. Do not assume everyone above a threshold must join on the standard date, or that everyone has a deferral. Confirm your category against HMRC’s current eligibility guidance and exemption guidance.

• HMRC’s published exemption guidance lists automatic exemptions for 2026–27 where the 2024–25 return claimed averaging relief as an individual (farmer, market gardener or creator of literary or artistic works), qualifying care relief, or included SA107 (trust/estate income) or SA109 (residence). That guidance describes April 2027 as the next possible start; confirm how the newer Budget deferral affects you before relying on that date.
• Exemptions extending beyond April 2027 are listed for a 2024–25 return containing SA102M (ministers of religion), SA103L (Lloyd’s members with self-employment/property income), Married Couple’s Allowance or Blind Person’s Allowance. HMRC says the future timeline will be announced later.
• These categories depend on the return and claim conditions, not just an occupation. If first claimed in a later return, or averaging relief was claimed as a partner on SA104, check HMRC’s application requirements; do not assume an automatic exemption.

Budget 2026 also says April 2027 joiners will not receive late-submission penalty points for their first four quarterly updates in 2027–28. This is not a blanket exemption from MTD, reporting or other penalties.

Digital exclusion may be a reason for exemption. Exempt taxpayers must still report their income and gains through Self Assessment. Use HMRC’s exemption guidance and the official checker rather than treating this calculator as an exemption assessment.

Joint property ownership, overseas income, new or ceased income sources and amended returns can affect the assessment. HMRC has a specific rule where a joint owner only receives notice of their share after expenses. Check the qualifying-income guidance before entering figures in these cases.

HMRC says the timeline for partnerships will be set out later. This Income Tax calculator is not for limited-company Corporation Tax.

HMRC also lists automatic exemptions for people without a National Insurance number before the tax year starts, certain trust/non-resident-company returns, personal representatives and specified incapacity arrangements. An entity or representative exemption does not exempt your own trade or property income. Self Assessment still applies: submit the return for the year before joining, and continue reporting income and gains if exempt. To sign up, HMRC requires Self Assessment registration and a return submitted in the last two years.