MTD for ITSA Checker 2026

How it's calculated

MTD for Income Tax is not a new tax — it changes how you report income HMRC already taxes. The test for whether you are mandated is purely about size of income, not profit. HMRC adds together your gross self-employment turnover and your gross property income — both measured before deducting any expenses, mortgage interest or allowances — to give your qualifying income. Income from employment, pensions, dividends, savings or your share of partnership profit as an individual partner does not count towards this figure. If your qualifying income exceeds the threshold for a given year, you must keep digital records, send four cumulative quarterly updates and submit your tax return through MTD-compatible software. The threshold is staged: it is £50,000 for the tax year beginning 6 April 2026, falling to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Crucially, the year HMRC tests is not the current one — it looks at the qualifying income on your Self Assessment return from two years earlier. So mandation from April 2026 is decided by your 2024-25 return, and HMRC writes to tell you. You also do not need to start using MTD until after you have submitted your first Self Assessment tax return. This checker compares the combined self-employment and property figures you enter against the threshold for the tax year you select, and tells you whether you are in scope and when your obligations begin.

Qualifying income = gross self-employment turnover + gross property income

Must comply  if  Qualifying income  >  Threshold for the year

Threshold:  2026/27 = £50,000
            2027/28 = £30,000
            2028/29 = £20,000

(Both income figures are GROSS — before any expenses.)

Worked example

Take a sole trader who also lets out a flat, checking their position for the 2026-27 tax year (the first phase, threshold £50,000):

Because the combined gross figure of £53,000 sits £3,000 over the £50,000 threshold, this person is mandated into MTD for Income Tax from 6 April 2026. Note the test uses gross turnover, not profit — even if expenses reduced the taxable profit well below £50,000, the obligation would still apply.

When your result may differ

This checker tells you whether you are mandated, but the exact timing can differ. HMRC decides mandation from the qualifying income on the Self Assessment return two years before the tax year starts — so your April 2026 status is set by your 2024-25 figures, and HMRC notifies you in writing. Your current income may differ from that base year. If you start self-employment or property letting partway through, you are not brought in immediately — HMRC reviews each year and gives notice. A few groups can apply for exemption, including those who are digitally excluded (for example, by age, disability or location with no reliable internet) and some trustees and personal representatives. Your share of profit from a partnership as an individual partner does not count towards qualifying income, although personal self-employment or property income connected with a partnership can still count. Partnerships as entities are not yet in scope and will join at a later, separate date. Foreign income and jointly-held property have specific rules for how the gross figure is counted. Once you are mandated, HMRC says you can choose to opt out if your qualifying income drops below the relevant threshold for three tax years in a row. Finally, even below the threshold you may volunteer early; HMRC says quarterly-update penalty points do not apply while you are volunteering, but late tax-return penalty points can still apply.

Rates and thresholds

MTD for Income Tax phased rollout — qualifying income thresholds and start dates.

Sources & legal basis

Update log

• 2026-04-09 — Updated for the 6 April 2026 launch of MTD for Income Tax at the £50,000 threshold.
• 2026-06-15 — Added how-it-works, worked example, rollout table and source table; corrected the penalty description to the points-based £200 rule and noted the 2026-27 no-penalty grace period.
• 2026-06-22 — Aligned volunteer and penalty FAQ copy with current HMRC guidance: no quarterly-update penalty points in 2026-27, but tax-return and late-payment penalties can still apply.
• 2026-07-14 — Rechecked current HMRC MTD for Income Tax guidance; clarified excluded partnership profit, first Self Assessment return timing, the three-year opt-out rule and tax-return submission wording.