Reference · MTD timeline

MTD thresholds: £50k, £30k, £20k phase-in

HMRC is phasing MTD for Income Tax in over three years, by income threshold. Here is the full schedule, with the assessment year that drives each group and what to do once you know which one applies to you.

By Mehmet Demir · Last reviewed: 24 October 2026 · Source: HMRC · Methodology

Bottom line

2024-25 qualifying income over £50,000: MTD ITSA from 6 April 2026 (live now).
2025-26 qualifying income over £30,000: MTD ITSA from 6 April 2027.
2026-27 qualifying income over £20,000: MTD ITSA from 6 April 2028.
£20,000 or below in 2026-27: no new April 2028 start; existing MTD obligations continue unless HMRC's leaving rules apply.

Check my MTD start date

How the group logic works

For each announced start date, HMRC looks back at one fixed tax year's qualifying income: 2024-25 for April 2026, 2025-26 for April 2027, and 2026-27 for April 2028. Cross the threshold for that year, and you are in. Once you are in, you stay in even if your income later drops, unless you formally exit the regime under HMRC rules. Those launch assessment years do not roll forward.

That is only the launch schedule. HMRC also reviews your Self Assessment income each tax year, so if your qualifying income rises above the threshold in a later year, HMRC can require you to use MTD for Income Tax from the following tax year — even though the three dates above have already passed.

Source: HMRC: Find out if and when you need to use MTD for Income Tax ↗

What qualifying income means

Gross self-employment turnover plus gross UK and foreign property income declared on UK Self Assessment. PAYE salary, dividends, savings interest, pensions, and partnership profit shares are excluded. See the full breakdown on MTD qualifying income.

Add the right deadline to your calendar

The homepage deadlines section has an "Add to calendar" link for each start date: 6 April 2026, 2027, and 2028. Drop the relevant one into Google Calendar or Outlook so your software setup work lands at least a quarter ahead of go-live.

FAQs

When does MTD for Income Tax start?

In phases. The £50,000 group started 6 April 2026 (based on 2024-25 income). The £30,000 group starts 6 April 2027 (based on 2025-26 income). The £20,000 group starts 6 April 2028 (based on 2026-27 income).

Which tax year does HMRC look at?

For the three announced start dates, a specific past tax year: 2024-25 for an April 2026 start, 2025-26 for April 2027, and 2026-27 for April 2028. Separately, HMRC reviews your Self Assessment income each tax year and can require you to start MTD for the following tax year.

What if I cross a threshold mid-year?

Crossing the threshold during a year does not pull you into MTD that year. You join the group that matches the assessment year HMRC checks for that threshold.

What if my income rises later?

HMRC reviews your qualifying income each tax year, not just for the announced launch dates. If your income goes above the threshold in a later tax year, HMRC can require you to use MTD for Income Tax from the following tax year. See HMRC guidance on GOV.UK: Find out if and when you need to use MTD for Income Tax.

Do the thresholds apply to gross or net income?

Gross. HMRC uses turnover and rent received before any expenses, mortgage interest, or capital allowances.

What if I am below £20,000 in 2026-27?

£20,000 or below in 2026-27 does not by itself trigger a new April 2028 start. If you are already in MTD, your obligations continue unless HMRC leaving rules let you exit — see the leaving-MTD guide in the related links. HMRC still reviews your income each tax year, and may extend MTD to lower thresholds in future, but no further phases have been confirmed.

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This guide is general information, not professional tax advice. Always verify against HMRC's official guidance or speak to a qualified accountant.