Making Tax Digital Income Checker
MTD for Income Tax is being phased in by income, so different landlords start in different tax years. HMRC decides using your income from two years earlier - which is why you can't work it out from what you earn now. Answer four questions to see your group, your start date and your first deadline.
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Why your MTD start date is hard to work out
HMRC uses a two-year-old return
Mandation is decided by the Self Assessment return from two years before your start date - so 6 April 2026 was decided from your 2024-25 return. That is why you cannot work your own start date out from this year's rent, and why HMRC's letter is the first many landlords hear of it.
It is gross income, not profit
The test is your combined property and self-employment turnover before any expenses are taken off. Plenty of landlords are over a threshold on gross income while comfortably under it on profit.
FAQs
When do I have to start using Making Tax Digital for Income Tax?
It depends on your qualifying income, and HMRC decides using the Self Assessment return from two years before your start date. Over £50,000 in 2024-25 means you should already have started, on 6 April 2026. Over £30,000 in 2025-26 means you start on 6 April 2027. Over £20,000 in 2026-27 means 6 April 2028.
What counts as qualifying income?
Your gross income - before expenses - from property and self-employment added together. Rent from UK property counts, as does rent from property abroad if you are a UK resident, sole trader or self-employment turnover, and your share only of a jointly owned property.
Wages taxed through PAYE, state or private pensions, dividends including from your own company, rent held in a limited company, your share of partnership profit, and income from a UK REIT or Property Authorised Investment Fund all do not count.
Why does HMRC use my income from two years ago?
Because the return for the year immediately before your start date has not been filed yet when the decision has to be made. So 6 April 2026 was decided from the 2024-25 return, 6 April 2027 from 2025-26, and 6 April 2028 from 2026-27. It is the single thing most landlords get wrong about MTD.
What will I actually have to do?
Keep digital records of rent and expenses, send HMRC a quarterly update on 7 August, 7 November, 7 February and 7 May, and file a final declaration by the following 31 January in place of your Self Assessment return.
Each quarterly update covers everything since 6 April, so they build up through the year rather than being separate three-month blocks.
What are the penalties for missing an MTD deadline?
Missing a deadline earns a penalty point. Four points triggers a £200 fine, and points expire after twelve months of compliance. HMRC is not issuing penalty points for late quarterly updates during a landlord's first year in MTD, but that easement does not cover the final declaration.