Making Tax Digital for Income Tax Checker
Add your gross sole-trader and property income to check the standard Making Tax Digital for Income Tax start date, and see which circumstances need an HMRC check.
LedgerKit provides estimates based on the information entered and the configured rates. Results do not constitute accounting, tax or legal advice. Check the latest official guidance or consult a qualified professional before acting on a calculation.
How this checker works
Choose one Self Assessment return and add the gross income from all of your personal sole-trader businesses and property sources. Use income before expenses and tax, not profit, and match the VAT treatment used on the return. For jointly owned property, enter your share.
The selected return determines the threshold and start date. Qualifying income above £50,000 on the 2024/25 return points to 6 April 2026; above £30,000 on the 2025/26 return points to 6 April 2027; and above £20,000 on the 2026/27 return points to 6 April 2028.
The published tests say “more than”. An amount exactly equal to £50,000, £30,000 or £20,000 does not cross that stage’s threshold.
Employment, dividends, pensions, company income and an individual partner’s share of partnership profit do not count towards qualifying income, although they may still need to appear on a tax return.
Annualisation, ceased sources, residence, amended or late returns, exemptions and some specialist income cannot safely be decided from a simple total. The checker identifies these answers and directs you to HMRC rather than treating an exemption as confirmed.
Check each relevant return separately. The earliest threshold crossed determines the standard start date, and someone already required to use MTD does not leave automatically because a later year falls below a staged threshold.
Worked example
On a 2024/25 return, £27,000 sole-trader turnover plus £25,000 gross property income gives £52,000 qualifying income. Because £52,000 is more than the £50,000 threshold, the standard start date was 6 April 2026, assuming at least one source continued and no exemption or special rule applied.
Frequently asked questions
What is qualifying income?
It is the total gross income from all of your personal sole-trader and property sources before expenses and tax. Add the sources together for the individual being checked.
Is the threshold based on profit?
No. Business costs and property expenses do not normally reduce qualifying income. Use gross turnover and gross property income unless HMRC’s guidance says a different figure applies to your particular return.
Should sole-trader income include VAT?
Match the income figure on the return. A cash-basis VAT-registered business can choose to declare income including or excluding VAT; if VAT is included on the return, it counts towards qualifying income.
What income does not count?
Employment, dividends, State or private pensions, company turnover and an individual partner’s share of partnership profit do not count towards this test. They may still need to be reported elsewhere on the tax return.
What if I jointly own a rental property?
Use your share of the property income. If you are only told your share after expenses have been deducted, HMRC may assess that supplied figure, so choose that a special case applies and verify it with HMRC.
What if I am exactly on the threshold?
The published tests say “more than”. Exactly £50,000 for 2024/25, £30,000 for 2025/26 or £20,000 for 2026/27 does not trigger that stage’s start date.
What if a business or property source has ceased?
If one source continues, income from another source that ceased after the return can still count. If all relevant sources cease before the start date, tell HMRC because you may not need to start MTD. You may still need to submit the relevant tax return.
What happens if my income later drops?
Once you are using MTD, a single lower-income year does not automatically remove the requirement. HMRC says you may choose to opt out after qualifying income stays at £20,000 or less for three consecutive tax years, subject to the current rules.
Could I be exempt?
Possibly. Automatic, temporary and application-based exemptions cover particular circumstances, including some cases of digital exclusion, no National Insurance number, residence, incapacity, certain reliefs and particular return pages. Use HMRC’s exemption guidance because this checker does not approve or confirm an exemption.
What does using MTD involve?
You normally need compatible software, digital records and quarterly updates for each relevant business or property source, followed by the year-end tax return through compatible software. Check HMRC’s current step-by-step guidance before signing up.
Is this an HMRC service?
No. LedgerKit is independent and is not affiliated with or endorsed by HMRC or GOV.UK. This result is guidance based on your answers, not HMRC confirmation.