HMRC is phasing in MTD for Income Tax based on your gross self‑employment or property income. The threshold drops each year, bringing more people into the system.
What this means in practice
Anyone who meets the threshold for their relevant year will need to:
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keep digital records
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use HMRC‑compatible software
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send quarterly updates
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submit an End of Period Statement
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complete a Final Declaration (replacing the Self Assessment return)
MTD for Income Tax isn’t based on your current income, it’s based on your income in the tax year before your start date. As the threshold drops each year, more people will be brought into the system.