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Guide

Do you actually have to use Making Tax Digital? The income thresholds

Whether you need MTD comes down to one number — your qualifying income — and the date it applies. Here are the thresholds and how the income is measured.

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You only have to use Making Tax Digital for Income Tax once your qualifying income passes a set level, and that level drops over the next few years:

  • From 6 April 2026: qualifying income over £50,000.
  • From 6 April 2027: over £30,000.
  • From 6 April 2028: over £20,000.

What counts as “qualifying income”

This is the part people get wrong. Qualifying income is your gross income from property and self-employment added together, before you take off any expenses. It’s turnover, not profit. So £28,000 of rent plus £15,000 of self-employed income is £43,000 of qualifying income, even if your actual profit is far lower. A salary, pension or savings interest doesn’t count towards this figure.

It’s measured per person

The threshold applies to you as an individual, on your share. If you own a property jointly, only your share of the rent counts. Two people who each own half of a £40,000-a-year property have £20,000 each, not £40,000.

Below the threshold?

If you’re under the level that applies to you, you don’t need quarterly updates yet — carry on with a normal Self Assessment return. It’s still worth keeping digital records, because the threshold drops each year and many landlords will be brought in by 2028. You can confirm your position with HMRC’s eligibility checker.

New to all of this? Start with what Making Tax Digital is, and if you’re close to the line, Quarterwise is free for a single property so you can keep tidy records at no cost.

Common questions

Is the threshold based on income before or after expenses?
Before. Qualifying income is your gross rental and self-employment turnover, added together, before any expenses.
Does my salary or pension count towards the threshold?
No. Only property and self-employment income count towards the qualifying-income figure. Employment, pension, savings and dividend income don’t — though you still report them in the normal way.
What if I own a property jointly?
The threshold is measured on your share only. If you own half a property, only half of its rent counts towards your figure.

Last updated 7 June 2026. Quarterwise is software, not a tax adviser — if you’re unsure how the rules apply to you, check with HMRC or a qualified accountant.

Related guides

What is Making Tax Digital, and what does it mean for landlords?Making Tax Digital is more frequent, not more complicated. Here is exactly what changes for landlords, and what stays the same.Every Making Tax Digital deadline for landlordsFour quarterly updates and one final declaration. Here are all the dates, the calendar-quarter option, and how the penalty points work.Free Making Tax Digital software for a single propertyIf you let one property, you can keep digital records and file to HMRC for free. Here is exactly what’s included, and where the paid plans begin.

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