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: 2 May 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: not in any announced group.
How the group logic works
For each future start date, HMRC looks back at a specific tax year's qualifying income. 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. The look-back year is fixed and does not roll forward.
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?v
Which tax year does HMRC look at?v
What if I cross a threshold mid-year?v
Do the thresholds apply to gross or net income?v
What if I am below £20,000 in 2026-27?v
Found this useful?
Related guides
Find your deadline in 60 seconds
Run the eligibility checker for an answer tailored to your income bracket and taxpayer type.
Start the check →This guide is general information, not professional tax advice. Always verify against HMRC's official guidance or speak to a qualified accountant.