£50K · £30K · £20K
MTD Income Tax thresholds
See the strict “over” thresholds and start dates for all three Making Tax Digital phases.
Your MTD verdict
Qualifying income
£52,000 / year
Checking live mandation date…
- Phase
- P1
- Income test
- Strictly over £50,000
- HMRC tests
- 2024/25 Self Assessment return
HMRC normally tests qualifying income using the previous tax year’s Self Assessment return.
What you must do
- Keep digital records
- Send 4 quarterly updates a year (deadlines 7 Aug, 7 Nov, 7 Feb, 7 May) via MTD-compatible software
- Submit a final declaration by 31 January after the tax year (replaces the Self Assessment tax return)
Key scope notes
- Qualifying income means combined GROSS income from self-employment (turnover) + property (rental), before expenses.
- Excluded: employment / PAYE wages, dividends, company director salary, company-held (incorporated) property income.
- Partnerships have a separate MTD timeline — not covered here.
- Jointly-owned property and multiple businesses can require additional review.
General information, not tax advice. Check GOV.UK / your accountant.
Free MTD readiness checklist
Get the four-page setup guide by email.
What to know
- Over £50,000: Phase 1 from 6 April 2026.
- Over £30,000: Phase 2 from 6 April 2027.
- Over £20,000: Phase 3 from 6 April 2028.
- Exactly £50,000, £30,000 or £20,000 is not over that threshold.
Key dates
| Phase | Qualifying income | From | Tested on |
|---|---|---|---|
| 1 | Over £50,000 | 6 April 2026 | 2024/25 return |
| 2 | Over £30,000 | 6 April 2027 | 2025/26 return |
| 3 | Over £20,000 | 6 April 2028 | 2026/27 return |
MTD Income Tax thresholds FAQs
Is exactly £50,000 in Phase 1?
No. The threshold is strictly over £50,000.
When does the £30,000 phase begin?
6 April 2027.
Is the £20,000 phase confirmed?
Yes. It starts on 6 April 2028 and was announced in March 2025.
What if my income is £20,000 or less?
You are not currently mandated under these phases.
Which return tests Phase 1?
The 2024/25 Self Assessment return.
Related MTD guides
Sole traders · Landlords · Thresholds · Quarterly updates · Complete guide