Who Must Use MTD for Income Tax?
MTD for Income Tax applies to individuals with qualifying income over £50,000 (from April 2026) and over £30,000 (from April 2027). Qualifying income includes self-employment and property income combined.[1]
Who Is Exempt?
The following groups are excluded from MTD for Income Tax:[2]
- Individuals with qualifying income below the threshold
- Trustees and personal representatives of deceased persons
- Non-UK resident landlords (initially)
- Those with no self-employment or property income (even if they file SA for other reasons)
Digital Exclusion Exemption
You can apply for an exemption if it’s not reasonably practicable for you to use digital tools due to:[2]
- Age
- Disability or health condition
- Remote location with no reliable internet
- Religious objections to using computers
How to Apply for Exemption
Contact HMRC to discuss your circumstances. If approved, you’ll continue to file through the traditional Self Assessment process instead of MTD.[3]
Agent filing: If you have a tax agent who can file digitally on your behalf, HMRC may not grant a digital exclusion exemption. The agent can handle the digital requirements for you.
Voluntary Use
Even if you’re below the threshold, you can opt in to MTD voluntarily. This lets you benefit from digital record-keeping and quarterly reporting before it becomes mandatory. You’ll need MTD-compatible software to keep digital records and send updates to HMRC.[1]
Frequently Asked Questions
Who is exempt from Making Tax Digital for Income Tax?
Individuals with qualifying income below the threshold, trustees, personal representatives of deceased persons, and initially non-UK resident landlords are all exempt from MTD for Income Tax.
Can I get an MTD exemption if I cannot use a computer?
Yes. You can apply for a digital exclusion exemption if it’s not reasonably practicable for you to use digital tools due to age, disability, health, remote location, or religious objections.
What is the income threshold for MTD for Income Tax?
MTD applies to those with qualifying self-employment and property income over £50,000 from April 2026, and over £30,000 from April 2027.
Can I use MTD voluntarily if I am below the threshold?
Yes. You can opt in to MTD voluntarily to benefit from digital record-keeping and quarterly reporting before it becomes mandatory for your income level.
Further Reading
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Sources
- Making Tax Digital for Income Tax — GOV.UK
- MTD exemptions — GOV.UK
- Income Tax: general enquiries — GOV.UK