Use the tool below to check if you need to comply with Making Tax Digital for Income Tax (MTD ITSA). Enter your gross self-employment income and UK property income from your most recent Self Assessment return.
Check your MTD status
How MTD phases work
| Phase | Date | Qualifying income |
|---|---|---|
| Phase 1 | 6 April 2026 | Over £50,000 |
| Phase 2 | 6 April 2027 | Over £30,000 |
| Phase 3 | 6 April 2028 | Over £20,000 |
Qualifying income = gross self-employment income + gross UK property income. HMRC tests this on your most recent Self Assessment return on file.
If your income is below £20,000, you're not currently in scope for MTD Income Tax. If you drop below the threshold after registering, HMRC's rules are still being finalised.
What you need to do if you're in scope
- Pick HMRC-recognised software — choose from our independent reviews
- Set up a bank feed — most software connects to your business bank account
- Start submitting quarterly updates — every 3 months from your phase start date
- Submit your End of Period Statement — by 31 January after the tax year ends
Exemptions
You may be exempt from MTD if:
- You're digitally excluded by age, disability, or lack of internet access
- You don't have a National Insurance number
- You have a Lasting Power of Attorney and the donor has lost capacity
- Your only trading income is through a limited company (MTD for Corporation Tax is not yet confirmed)
- Your qualifying income is below £20,000
What if I ignore MTD?
If you're in scope and don't comply, HMRC's penalty points system kicks in:
- Miss your End of Period Statement: £100 penalty
- 3 months late: £300
- 6 months late: £500
- 12 months late: additional penalties possible
Missing a quarterly update alone doesn't trigger a penalty, but it puts your records at risk. See our MTD penalty guide for the full breakdown.