MTD for Income Tax is the next step in the MTD timeline. It is a new way to report income from self-employment and property to HMRC and will be introduced in phases starting in April 2026.
From April 2026 if you have qualifying income of over £50,000 annually, you'll need to use MTD compatible software and make a quarterly submission to HMRC.
Your qualifying income can be from self-employment (not partnerships), rental or both. HMRC will look at your gross income (or ‘turnover’) from the year before. So, if you submitted a tax return for tax year 2024 to 2025, they’ll use this to work out your qualifying income for the 2026 to 2027 tax year.
HMRC have announced that from April 2027 MTD for Income Tax will be mandated for self-employed businesses and landlords with business turnover above £30,000.
Sole traders or landlords with a gross income from self-employment and property over £20,000 will be introduced into the MTD system at some point in the future.