Who is exempt from Making Tax Digital for Income Tax?

Checked against GOV.UK on 14 August 2026 · Applies from 6 April 2026 onwards.

“As you only have two properties, just check that the income from that is over £50k pa. If not, you do not need to do MTD yet.”

We hear this most. a landlord telling another one to check before panicking, OpenRent Community forum, 31 July 2026 — someone in the same position as you.

Short answer

More people than expected. Some exemptions are automatic, some you must apply for, and some run out in April 2027.

If the answer turns out to be yes, these are the dates you inherit. Your next quarterly update is due 7 November 2026, and because updates are cumulative it covers 6 April to 5 October 2026 — so it also catches up 7 August 2026 if you missed it. Your tax return for 2026 to 2027 is due 31 January 2028, and that one is still in the points system. And from September 2026 HMRC has been signing people up itself, in stages, if they had not signed up.

You are not alone, and this is the measured version of that sentence. HMRC put 864,000 sole traders and landlords in scope for this tax year (HMRC, 5 February 2026), and reported on 12 August 2026 that 436,000 had sent a first quarterly update and 570,000 had signed up. We have not subtracted one from the other to make a "how many are behind" headline — they were published six months apart and count different things — but you can see the size of the room you are standing in.

What to do tonight

fifteen minutes, tonight, and it may end with you doing nothing at all

Add your gross self-employment income to your gross property income, from the tax return you filed last. Before expenses. That total is the only figure that matters.
Compare it against your year's line: over £50,000 on the 2024 to 2025 return means you are already in; over £30,000 on the 2025 to 2026 return means April 2027; over £20,000 on the 2026 to 2027 return means April 2028.
If you are under the line, stop. There is nothing to apply for and nobody to ring — the exemption is automatic, and none of the rest of this page applies to you.

None of those three steps costs money. Anyone charging you to do them is selling you something HMRC gives away.

Where these come from, on GOV.UK: quarterly updates and their deadlines · the tax return · who has to use MTD, and when · working out qualifying income · the recognised-software finder · what to do if HMRC signed you up.

The three lines, and the return each one is measured on

Qualifying income	On the tax return for	You must use MTD from
Over £50,000	2024 to 2025	6 April 2026 — already in force
Over £30,000	2025 to 2026	6 April 2027
Over £20,000	2026 to 2027	6 April 2028
£20,000 or less	—	Automatically exempt, unless your circumstances change

Qualifying income is gross self-employment income plus gross property income, before expenses, taken from the tax return you filed in the previous tax year. Sources: find out if and when you need to use MTD and work out your qualifying income (GOV.UK).

The free route, before anyone sells you a subscription

HMRC publishes the official list of software recognised for Making Tax Digital for Income Tax, and its own guidance says plainly that “free products are available for those with simple tax affairs”. We drove that finder ourselves on 1 September 2026 and it returns recognised products costing £0 — for sole traders and for landlords, including bridging tools that submit straight from a spreadsheet you already keep. We take no commission from any of them, we rank none of them, and this site carries no affiliate links.

HMRC's official software finder (gov.uk) · how bridging software works · the free two-number check · your own four dates

Signing up for Making Tax Digital is free at GOV.UK. So is the checker on this page, and so is every answer on this site.

HMRC's exemptions are spread across categories that are easy to miss: automatic or applied-for, permanent or temporary. This is all of them on one page.

Automatic and permanent, unless your circumstances change

Qualifying income of £20,000 or less.
No National Insurance number before the start of the tax year. HMRC's example: receiving an NI number on 30 April 2026 with qualifying income over £50,000 for 2024 to 2025 means exemption for the 2026 to 2027 tax year.
Role-based: non-resident companies submitting an SA700; trusts submitting an SA900, including charitable trusts and trusts of non-registered pension schemes; and acting as the personal representative of someone who has died.
On your 2024 to 2025 return: the SA103L page as a Lloyd's member in relation to your underwriting business; or a declaration that you are not physically or mentally capable of providing information to HMRC, where a UK power of attorney is currently in place or a legally appointed deputy, controller or guardian is in place.

Automatic, but only until April 2027

You do not need MTD for the 2026 to 2027 tax year if, on your 2024 to 2025 return, you:

claimed averaging relief on the SA103 page as an individual — as a farmer, market gardener, or someone who personally creates literary or artistic works
claimed qualifying care relief, such as a foster carer or kinship carer
included the SA107 page for income from trusts or estates
included the SA109 page

These end there: you will need MTD from 2027 to 2028 if your qualifying income is above £30,000 on your 2025 to 2026 return.

Automatic, and lasting beyond April 2027

If your 2024 to 2025 return included any of the following, you are automatically exempt and HMRC will set the timeline for you later:

the SA102M page as a Minister of religion of any faith, religion or denomination
the SA103L page as a Lloyd's member with self-employment or property income
a declaration that you received or transferred Married Couple's Allowance (for those born before 6 April 1935)
a declaration that you received or transferred Blind Person's Allowance

Exemptions you have to apply for

Two routes need an application with supporting information: being digitally excluded, and cases where you did not include one of the claims or pages above on your 2024 to 2025 return but reasonably expect to on your 2025 to 2026 or 2026 to 2027 return — including averaging relief claimed as a partner on the SA104 page.

Partnerships

Partnerships do not currently need to use MTD for Income Tax. HMRC will set out the timeline later.

Exempt is not excused

If you are exempt you must continue to report your income and gains in a Self Assessment tax return as normal.

Questions people ask

Are foster carers exempt from Making Tax Digital?

If you claimed qualifying care relief on your 2024 to 2025 tax return you are automatically exempt for the 2026 to 2027 tax year. That exemption lasts until April 2027.

Are partnerships in Making Tax Digital?

Not currently. HMRC has said it will set out the timeline for partnerships at a later date.

Andrew at Axion Labs

Some people who land on this page turn out not to be in Making Tax Digital at all, and I'd rather you found that out here in two minutes than after paying for a year of software. The threshold is gross and it's combined — turnover, both sources added together, before expenses. If that puts you under the line, there's nothing to apply for and nobody to ring. Close the tab with my blessing.

Sources

General information about UK tax rules, not tax advice. Your own circumstances and HMRC's official guidance govern your position. If you are unsure, speak to an accountant or contact HMRC. Tax rules change — if this page is more than a few months old, check the GOV.UK pages linked above. Found an error? Email hello@getaxionlabs.com and we will correct it.

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