You’re Under £50,000 Now — But MTD Could Still Be Your Next Tax Change

Being below the £50,000 threshold today could give you the impression that Making Tax Digital is someone else’s problem. But the threshold is moving — and it is moving down. From 6 April 2027, the qualifying income threshold will fall to £30,000, meaning some people who are currently outside MTD will have to start using it based on their income for the previous tax year.

And that is not the final step. From 6 April 2028, the threshold will fall again to £20,000. So a self-employed person or landlord with £35,000 of qualifying income might be outside MTD under the current £50,000 threshold, but could fall within the rules for 2027–28. Someone with £22,000 could face the same change when the threshold reaches £20,000.

The interesting part is that you do not need to suddenly reach £50,000 for MTD to become relevant. The question is which threshold applies to your qualifying income and when. With the limits changing over the next two years, keeping track of your income now could tell you whether MTD is actually as far away as you think.