Making Tax Digital for income tax – what are the qualifying conditions and how do I register?

Qualifying thresholds for MTD for income tax  

I am a sole trader and earn £15,000 a year. Do I still carry on as usual? 

At the moment you do not need to join MTD for income tax as you don’t meet the qualifying criteria – for the 2026/27 tax year, only those with qualifying income over £50,000 need to join.  

You can carry on as usual with your accounts and self-assessment tax return but do keep in touch with your accountant if there are any changes to your income levels over the next few years. In 2027/28 those with qualifying income over £30,000 must join MTD for income tax and those over £20,000 the following year.  

I had a look at the HMRC website and if you don’t know what the MTD for income tax parameters are, it’s difficult to navigate. What should I do? 

MTD for income tax can be difficult to understand when you first look into it. If you are not sure whether you qualify or if you need to register, speak to your accountant now. If you don’t have an accountant yet, call TaxAssist Accountants on 0800 0523 555 for a free initial consultation. 

I have property income and occasional contract work via a community interest company (not for profit) and I receive local government early pension payments. Do I need to register for MTD? 

You only need to register for MTD for income tax for the 2026/27 tax year if your property income and self-employed contract income combined were more than £50,000 for the 2024/25 tax year. 

Keep an eye on your qualifying income in future years as the qualifying threshold reduces to £30,000 for 2027/28 and £20,000 for 2028/29. 

I am a sole trader and registered with the Construction Industry Scheme (CIS); do I consider gross income as invoiced or the amount paid into my bank when I check my qualifying income? 

When calculating your qualifying income for MTD for income tax, use your gross income as invoiced. 

Qualifying income 

Is pension income included in qualifying income? 

Pension income does not count towards qualifying income – it is only the total of property income and self-employment income. 

Pension income should not be reported on quarterly updates but should be reported on your end of year tax return through MTD for income tax. 

Registering for MTD for income tax  

I already have a Government gateway ID account. Do I need to register for MTD specifically? If so, will I then have two HMRC accounts, and will these be linked in some way? 

You do need to register for MTD for income tax specifically – HMRC will not register you automatically when you meet the qualifying threshold. However, you will use your Government gateway (or GOV.UK One Login) account details to register for MTD so you will still only have one HMRC account.  

How do I register for MTD for income tax? 

You register for MTD for income tax on HMRC’s website here. You will need your Government gateway (or GOV.UK One Login) details. If you need help, please speak to your TaxAssist Accountant. 

I am registered for MTD for VAT. Does that mean I am automatically registered for MTD for income tax or do I need to register for it as well? 

You will not be automatically registered for MTD for income tax by reason of already being registered for MTD for VAT. If you meet the threshold of £50,000 qualifying income in 2024/25, then you should register for MTD for income tax now as you need to join MTD for 2026/27. 

What counts as a separate business for MTD for income tax purposes? 

If you have two businesses with different income streams, you must add together the income for both in order to check if your qualifying income meets the threshold. However, you will need to make separate quarterly updates for each business. Speak to your accountant to make sure you choose an MTD-compliant software solution that can do this. 

First published 29 Jun 2026

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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