What if your income exceeds £50,000 mid-year?

If your income exceeds £50,000 during the current tax year, it does not mean you must switch to Making Tax Digital (MTD) immediately.

HMRC determines whether you fall within MTD based on your gross income from self-employment and/or property income in the previous tax year. This is the figure used to decide whether MTD becomes mandatory for you.

If your income is growing and you expect to exceed the threshold, it’s worth preparing in advance. Moving to MTD-compatible software, keeping digital records, and ensuring your income and expenses are recorded correctly will make the transition much smoother and help reduce the risk of errors once the new rules apply.