The MTD thresholds: £50k now, £30k next April, £20k the year after

The timetable

April 2026: qualifying income over £50,000. Already live
April 2027: the line drops to £30,000
April 2028: it drops again to £20,000

Each drop pulls in a much bigger group than the last. If you're anywhere near £30,000 of turnover, your MTD start date is eight months away, and it's worth knowing now rather than next March.

The number that matters

Qualifying income is your turnover before expenses, from self-employment and property added together. Not profit.

Worked example, because this is the one that catches everyone: a courier turns over £55,000 and has £20,000 of costs. Profit £35,000, which sounds comfortably under the £50,000 line. It isn't under anything. The test looks at the £55,000, so MTD applies.

Two incomes, one test

£28,000 from self-employment and £25,000 of rent is £53,000 of qualifying income. In scope. People with a trade plus a rental property are exactly the group that gets surprised.

How HMRC decides

Your 2024/25 tax return is what put you in scope for 2026. Each year's return sets your status for the year after next, so the return you file this January decides your April 2027 position.

If you're under the line

Nothing is compulsory yet. You can join voluntarily, and for some people with tidy digital records that's genuinely sensible, but there's no rush and no penalty for waiting. When a client's under the threshold we say so and leave it there.