When Will Making Tax Digital Affect Me? Thresholds, Registration and Timing Explained

MTD for Income Tax isn't switching on for everyone at once — HMRC is phasing it in by income level over several years. Here's how to work out which year applies to you, and what “qualifying income” actually means.

Making Tax Digital Thresholds

Mandatory use of MTD for Income Tax is being introduced in three stages, based on your qualifying income:

• Qualifying income over £50,000 (based on your 2024–25 tax return) — mandatory from 6 April 2026

• Qualifying income over £30,000 (based on your 2025–26 tax return) — mandatory from 6 April 2027

• Qualifying income over £20,000 (based on your 2026–27 tax return) — mandatory from 6 April 2028

  
  

As of today, the first phase of Making Tax Digital Thresholds is already live — if your qualifying income was over £50,000 in the 2024–25 tax year, you should already be using MTD or actively preparing to. A future date for partnerships joining MTD has not yet been confirmed by HMRC.

What counts as “qualifying income”

This is a common point of confusion, so it's worth being precise: qualifying income is your gross self-employment and property income combined — total turnover before you deduct any expenses — not your profit. A wedding photographer turning over £55,000 with £20,000 of expenses (studio rent, gear, editing software, second shooters) has a taxable profit of £35,000, but a qualifying income of £55,000 — comfortably over the £50,000 threshold. It's easy to underestimate where you sit if you're thinking in profit terms rather than turnover.

HMRC determines your qualifying income from the Self Assessment return you've already submitted, and should write to confirm if you need to join. Don't rely on waiting for that letter — check your own numbers, well before the relevant April deadline.

Sign-up isn't automatic

Unlike your existing Self Assessment record, you (or your accountant, acting as your agent) need to actively sign up for MTD for Income Tax — HMRC does not enrol you automatically the moment you cross one of the Making Tax Digital Thresholds. You'll need your Self Assessment record up to date, your business start date, and to confirm which tax year you're beginning MTD from. You can also sign up voluntarily before you're required to, which can be a good way to get comfortable with the process ahead of a hard deadline.

What to do now

Even if the £20,000 threshold in 2028 feels a long way off, photography income can grow quickly — a strong wedding season or a new corporate client can tip you over a threshold sooner than expected. It's worth checking where you stand every year, not just once.

How Viewfinder Accounting Can Help

Not sure which threshold applies to you, or when you'll be brought into MTD? Viewfinder Accounting can review your income, tell you exactly which tax year you'll be affected from, and handle the sign-up process on your behalf as your agent — so there are no surprises and no missed deadlines.