It already started.
Find out if it started for you.
MTD for Income Tax became mandatory in April 2026, and the threshold falls twice more by 2028. Whether you are in scope depends on a number most people calculate wrongly.
The threshold falls twice more.
Qualifying income is your gross self-employment income plus your gross property income, added together, before any expenses. Not profit.
- April 2026Over £50,000In force now
Sole traders and landlords. Roughly 864,000 people in this first wave.
- April 2027Over £30,000
The threshold falls, bringing in a substantially larger group.
- April 2028Over £20,000
Most sole traders and landlords of any size are now in scope.
Thresholds and dates checked against HMRC guidance on 2 September 2026. Re-verify at each Budget.
It is measured on what comes in, not on what you keep.
A landlord with £55,000 of rent and a mortgage that eats most of it is in scope. A freelancer turning over £52,000 with £20,000 of costs is in scope. Qualifying income is gross, and self-employment and property are added together before the test is applied.
Quarterly updates,
without the quarterly panic.
Financial IQ provides information and tools, not regulated tax advice.