Who Must Join and When
This lesson is for education only and is not tax advice. If your situation is complicated or you are unsure, speak to an accountant or tax adviser.
In Level 1 you saw that Making Tax Digital (MTD) for Income Tax changes how you report to HMRC. This lesson covers the next question: when do you have to start? The answer depends on two things:
- Your qualifying income. For now, think of this as your income from self-employment and property. Level 3 explains exactly how it is worked out.
- The tax return HMRC uses to measure it.
Step 1: Check You Are in the Group the Rules Cover
According to GOV.UK, you must use MTD for Income Tax only if all three of these apply to you:
- You are registered for Self Assessment as a sole trader or landlord.
- You get income from self-employment or property.
- Your qualifying income is over the threshold for that year.
If you are not a sole trader or landlord in Self Assessment, these start dates do not apply to you yet. Level 4 covers the groups not yet included and the exemptions.
DO: Write down whether you are a sole trader, a landlord or both, and confirm you file a Self Assessment return.
Step 2: Learn the Three Start Dates
The rules are coming in stages. Each stage has a lower threshold than the one before, and each one is measured using an earlier tax return.
| Start using MTD from | Qualifying income over | Measured on the tax return for |
|---|---|---|
| 6 April 2026 | £50,000 | 2024-25 |
| 6 April 2027 | £30,000 | 2025-26 |
| 6 April 2028 | £20,000 | 2026-27 |
The pattern to remember: HMRC looks at the tax year that ended one full year before your start date. Take the April 2026 start. The 2024-25 tax year ended on 5 April 2025, its return was due by 31 January 2026, and HMRC used that return to decide who starts on 6 April 2026.
The threshold is over the figure. Qualifying income of exactly £50,000 does not bring you in from April 2026.
DO: Copy the table into your notes. It is the core of this lesson.
Step 3: Understand That HMRC Checks Every Year
This is not a one-off test. GOV.UK says HMRC will review your Self Assessment return and check your qualifying income each tax year.
So a sole trader who is under £50,000 in 2024-25 has not escaped. Their 2025-26 return is checked against £30,000, and their 2026-27 return against £20,000. As income grows, or the threshold drops, you can be brought in later.
If your income is over the threshold, HMRC will write to you to confirm that you must start by the beginning of the following tax year. GOV.UK is clear, though, that it is still your responsibility to check whether and when you need to join. Don't wait for a letter.
DO: Mark each January filing deadline in your calendar as a checkpoint. After you file, compare your qualifying income with the next threshold.
What Changed Recently
- March 2025: the Spring Statement confirmed the third stage, £20,000 from April 2028.
- 22 May 2025: the government announced legislation to fix the start dates in law.
- February 2026 onward: HMRC began writing to people brought in from April 2026, based on their 2024-25 returns.
- September 2026: HMRC began signing people up itself, in stages, if its records show qualifying income over £50,000 for 2024-25 and they have not signed up yet. If this happens to you, log in to HMRC online services and check that the details HMRC holds are correct.
Worked Example: Find the Start Date
Follow the same steps for each person.
- Confirm they are a sole trader or landlord in Self Assessment.
- Find their qualifying income on the 2024-25 return. If it is over £50,000, they start on 6 April 2026.
- If not, check the 2025-26 return. If it is over £30,000, they start on 6 April 2027.
- If not, check the 2026-27 return. If it is over £20,000, they start on 6 April 2028.
- If they are under all three, they are not required to join yet. HMRC keeps checking each year.
Example A: Priya, sole trader (graphic designer)
- 2024-25 qualifying income: £42,000. This is not over £50,000.
- 2025-26 qualifying income: £46,000. This is over £30,000.
- Start date: 6 April 2027.
Example B: Tom, landlord
- 2024-25 qualifying income from rent: £56,000. This is over £50,000.
- Start date: 6 April 2026. Tom should already be signed up. If he is not, HMRC may sign him up.
Example C: Sam, sole trader (dog walker)
- 2024-25: £18,000. 2025-26: £19,500. 2026-27: £24,000.
- Sam does not start in 2026 or 2027, but £24,000 is over £20,000.
- Start date: 6 April 2028.
Check Your Answer
- Go to GOV.UK and search for "Check if you're eligible for Making Tax Digital for Income Tax".
- Compare the thresholds table there with yours.
- Use the GOV.UK eligibility checker with your own figures, or with Priya's, and confirm you get the same start date.
- If GOV.UK gives a different answer, or your income is close to a threshold, ask an accountant or tax adviser.
Checklist
- I am a sole trader and/or landlord registered for Self Assessment.
- I know my qualifying income for 2024-25 and, once filed, for 2025-26 and 2026-27.
- I have matched my income to the right start date.
- I have checked my answer against GOV.UK.
- I will re-check after every January filing deadline.
Key Takeaways
- Over £50,000 means starting 6 April 2026 (2024-25 return). Over £30,000 means 6 April 2027 (2025-26 return). Over £20,000 means 6 April 2028 (2026-27 return).
- The rules apply to sole traders and landlords registered for Self Assessment.
- HMRC checks qualifying income every tax year, so being under a threshold now does not mean you are out for good.
- HMRC writes to you, and since September 2026 it may sign you up, but checking is your responsibility.
- Always confirm your answer against GOV.UK's current guidance.