Does Making Tax Digital Apply to Me? Every Scenario, Answered

Updated 2026-06-11 · MTD Survival Kit team

The rule sounds simple — "MTD applies above £50,000" — but real lives are messier than thresholds. Here's the test, followed by every common scenario.

The two-step test

Step 1 — what counts. Add your gross income (before expenses) from all self-employment plus all property letting. This is your qualifying income. Employment (PAYE), pensions, dividends and savings interest do not count.

Step 2 — when you start:

Now the scenarios.

I'm employed full-time with a £25k side hustle. Your salary doesn't count. Qualifying income £25k → MTD from April 2028. Watch your growth: cross £30k on a future return and you join earlier.

I'm a sole trader with £40k turnover and £15k of costs. Gross, not profit: £40k → April 2027.

I'm a landlord with £55k rent but barely any profit after the mortgage. £55k gross → you're in now. Profit is irrelevant to the test (and your mortgage interest has its own special treatment in the records — it becomes a 20% tax credit, not an expense deduction).

Freelancer £28k + rental £24k. Combined £52k → in now. This combination catches more people than any other — neither income alone would qualify. And once in, you send two updates per quarter, one per income source.

My wife and I own a buy-to-let 50/50, £36k rent total. You each count your share: £18k each → neither of you is in yet (at £20k+ each you'd join in 2028). Jointly let property also gets a reporting concession: you may include income only in quarterly updates and deal with expenses at year end.

I do CIS subcontract work. CIS income is self-employment income — it counts in full (the gross amount, before CIS deductions).

Airbnb / holiday lets. Property income — counts. If you qualify for Rent-a-Room relief and stay within it, that income is generally outside the test; above it, it counts.

I started self-employment last year. New businesses join based on what appears on filed returns; broadly, you won't be required until your income has appeared on a return above the threshold. You can volunteer early to build the habit.

I'm a partner in a partnership. Partnerships are not yet required to join — their date hasn't been set. Your sole trade or property income still counts against the test.

I run a limited company. Outside MTD for Income Tax entirely. (If you also have personal rental or freelance income, that's tested as above.)

Pensioner with rental income. Pension doesn't count; rent does. £21k rent → April 2028.

I genuinely can't use digital tools. Digital exclusion exemptions exist (age, disability, location, religious grounds). You apply to HMRC and continue with paper/phone arrangements if granted.

If you're in (or will be)

Your obligations start on day one of your start year: digital records from 6 April, quarterly updates from the first quarter (deadline 7 August), tax return as usual. The free 2-Minute MTD Checker turns this article into your personal answer — start date, first deadline, and the 3 things to do this week. When you're ready to set up records that match HMRC's categories exactly, the MTD Survival Kit (£19) is the weekend version.

Educational content, not tax advice. Thresholds and rules per gov.uk, June 2026. Edge cases exist — confirm yours with a qualified accountant or HMRC.