ReceiptTrack
MTD thresholds explained: GBP 50k, GBP 30k and GBP 20k without the jargon
The first MTD Income Tax threshold is qualifying income over GBP 50,000 from 6 April 2026. The next thresholds are over GBP 30,000 from 6 April 2027 and over GBP 20,000 from 6 April 2028. The threshold check is based on relevant gross income figures from self-employment and property, not take-home pay and not profit after expenses. That means a low-margin business can still cross a threshold if sales are high enough. The MTD thresholds are simple once you separate income from profit. This guide walks through the dates and common examples.
Key takeaways
- The threshold is based on qualifying income, not profit after expenses.
- Self-employment and property income can be added together for threshold purposes.
- The threshold date that matters depends on the tax year and HMRC rules for your income.
- A threshold check should start with income streams, not bank balance or profit.
- If you are close to a threshold, keep records as if you may be brought in rather than waiting for certainty.
- HMRC letters and software prompts help, but you should still understand your own income position.