Who needs Making Tax Digital for Income Tax (and when)
A practice checklist for mapping clients to mandation waves — drawn from HMRC’s GOV.UK guidance.
Who is in scope
GOV.UK says a person needs MTD for Income Tax if all of the following apply:
- they are a sole trader or landlord registered for Self Assessment
- they get income from self-employment or property (or both)
- their qualifying income is more than the relevant threshold for the tax year
Start-date bands (practice view)
| Self Assessment return | Qualifying income | MTD starts |
|---|---|---|
| 2024 to 2025 | more than £50,000 | 6 April 2026 |
| 2025 to 2026 | more than £30,000 | 6 April 2027 |
| 2026 to 2027 | more than £20,000 | 6 April 2028 |
Partnerships will need MTD for Income Tax in the future; GOV.UK says the timeline will be set out later.
What to check on each client file
- Whether HMRC has written confirming a start date after reviewing the relevant return.
- Whether the client may be exempt (see our exemptions guide).
- That they still need a Self Assessment return for the tax year before they start MTD.
- Signup prerequisites: registered for Self Assessment and a tax return submitted in the last 2 years (sign-up guidance).
GOV.UK also publishes an interactive tool you can use on a client’s behalf to check if and when they need to start.
Client-letter hook
“HMRC reviews qualifying income each year. If your income is above the threshold, they write confirming your start date — but you remain responsible for checking even if a letter is late.”
Sources:
https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax
https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-income-tax
Related: start-date tracker