Overview
- From 6 April 2026, those with qualifying income over £50,000 must keep digital records and submit quarterly updates through compatible software, followed by a final year‑end declaration.
- The scope widens to individuals with qualifying income above £30,000 from April 2027 and above £20,000 from April 2028.
- HMRC estimates about 780,000 people will enter MTD for Income Tax in 2026, with a further 970,000 joining in 2027.
- HMRC’s testing programme has processed more than 2,000 successful updates with positive feedback, and both free and paid software options are available.
- Qualifying income is based on gross self‑employment and property receipts and excludes employment pay, jointly owned property income is apportioned by owner, and exemptions are limited to narrow circumstances.