QUALIFYING INCOME
Who does MTD for Income Tax apply to?
Sole traders and individual landlords whose combined gross qualifying income passes a phase threshold.
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What to know
- Qualifying income is gross self-employment turnover plus gross property income, before expenses.
- Employment/PAYE wages, dividends and company director salary are excluded from the test.
- Partnerships and company-held property income are outside this checker.
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 |
Who does MTD for Income Tax apply to? FAQs
Is the test on profit?
No. It uses gross turnover and gross rents before expenses.
Do wages from a job count?
No. PAYE employment income is excluded.
Do I combine trade and rental income?
Yes. The thresholds apply to the combined gross total.
Are partnerships included?
No. Partnerships have a separate MTD timeline.
Where does HMRC check my income?
On the relevant previous tax year’s Self Assessment return.
Related MTD guides
Sole traders · Landlords · Thresholds · Quarterly updates · Complete guide · Start date · Who it applies to · Final declaration · £30,000 threshold