Do I need Making Tax Digital if I earn under £20,000?

Checked against GOV.UK on 14 August 2026

This is the clearest line in the whole regime. Below the £20,000 mark you are automatically exempt from Making Tax Digital for Income Tax, permanently, unless your circumstances change.

What automatic means

You do not apply. You do not contact HMRC. HMRC's exemption guidance lists qualifying income of £20,000 or less as an automatic, permanent exemption unless your circumstances change.

What you still have to do

Being exempt from MTD does not exempt you from tax. You must continue to report your income and gains in a Self Assessment tax return as normal, by 31 January, and keep records as you do now.

Check the number properly first

Qualifying income is gross self-employment plus gross property income — turnover, before expenses. It is easy to be under £20,000 of profit and over £20,000 of qualifying income. Employment income, partnership profit share, dividends and pensions do not count towards it.

When this could change for you

• Your gross self-employment or property income grows past a threshold on a later tax return
• You start a second business or take on another property
• A source you had stopped is still counted, because you have another continuing source

The relevant threshold falls to £20,000 from April 2028, tested on the 2026 to 2027 return, so the figure to watch is the gross one on each year's return.

Check your qualifying income →

Sources

• Find out if you can get an exemption from Making Tax Digital for Income Tax (HMRC guidance)
• Work out your qualifying income for Making Tax Digital for Income Tax (HMRC guidance)
• Reduction of the mandation threshold from £30,000 to £20,000 from April 2028 (HMRC policy paper)

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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