Tools / Does Making Tax Digital apply to me?

Does Making Tax Digital apply to me?

Two things catch people out. HMRC uses gross income before expenses, not profit. And it tests the figure on a return from two years earlier, not this year's. This checker asks for the right year.

Use the figures from your 2024/25 Self Assessment return. That is the return HMRC tests for April 2026 mandation.

Which year's income is tested?

The return from two years before the start date. Mandation from 6 April 2026 is tested on your 2024/25 return, April 2027 on your 2025/26 return, and April 2028 on your 2026/27 return. This is the most misunderstood rule in MTD, and it is why a checker that asks for your current income gives the wrong answer.

What counts as qualifying income

Qualifying income is your gross income from property and self-employment added together, before you deduct anything. A landlord with £55,000 of rent and £40,000 of costs has qualifying income of £55,000, not £15,000, and is in scope from April 2026 despite a modest profit. Employment income, pensions, dividends and savings interest do not count towards it.

Thresholds and start dates

Qualifying incomeMTD applies fromTested on your
Over £50,0006 April 20262024/25 return
Over £30,0006 April 20272025/26 return
Over £20,0006 April 20282026/27 return

Jointly owned property

Each owner is assessed on their own share of the gross rents, not the whole property. A couple receiving £70,000 between them on a 50/50 split have £35,000 each, so neither is in scope for April 2026 on that income alone. Enter your share, not the property total.

On penalties, honestly: there are no late-submission penalty points for quarterly updates during 2026/27. Anyone telling you that you will be fined this year is wrong. From April 2027 a missed quarter earns a penalty point and four points triggers £200, which makes this the cheap year to get your record keeping straight.

More on Making Tax Digital

Is MTD based on turnover or profit?Turnover. Why a landlord making £15,000 can still be mandated. Which tax year does MTD use?Two years before you start. Your April 2026 date was set by your 2024/25 return. Jointly owned propertyEach owner is tested separately, so one of you can be in while the other is out. Who MTD does not apply toCompanies, partnerships, trustees and personal representatives. Can you opt out?Not by choice. What happens if you do not sign up.

Common questions

Is MTD based on profit or turnover?

Gross income before expenses, not profit. Rent of £55,000 with £40,000 of costs is qualifying income of £55,000, so that landlord is in scope from April 2026 even though the profit is £15,000.

Which tax year does HMRC look at?

The return from two years before the start date. April 2026 mandation is tested on your 2024/25 Self Assessment return, April 2027 on 2025/26, and April 2028 on 2026/27.

Do property and self-employment income get added together?

Yes. HMRC combines gross property income and gross self-employment income into one qualifying income figure. Someone with £30,000 of rent and £25,000 of freelance turnover is at £55,000 and in scope from April 2026.

What if I own the property jointly?

Each joint owner is assessed on their own share of the gross rents rather than the whole property. A couple with £70,000 of rent split evenly have £35,000 each.

Will I be fined if I miss a quarterly update in 2026?

No. HMRC is not issuing late-submission penalty points for quarterly updates during the 2026 to 2027 tax year. From April 2027 a missed quarter earns a penalty point and four points trigger a £200 penalty.

Does this apply in Scotland and Wales?

Yes. The MTD thresholds and start dates are UK-wide. Scottish and Welsh taxpayers have different income tax rates, but that does not change whether MTD applies to you.

Last verified 16 September 2026. This is an estimate from a calculator, not tax advice, and GlideOps is not a firm of accountants. It uses 2026/27 rates for England and Northern Ireland and cannot see your full circumstances. Check anything that matters against HMRC guidance or an accountant before you file or commit money.