MTD Qualifying Income Calculator | NoMoreJanuary

How this calculator works

The calculator adds up your qualifying income (self-employment + property) and compares it against the three MTD thresholds. It ignores non-qualifying income (PAYE, pensions, dividends, partnership shares, other) for the threshold test — but shows you the full breakdown so you can see what counts and what doesn't.

• Qualifying income: Self-employment turnover (gross, before expenses) + UK and foreign property income (gross). This is the only figure that determines whether you're mandated.
• Non-qualifying income: PAYE/employment, pensions, dividends, partnership shares, savings interest, capital gains. These don't count toward the MTD threshold, even if they push your total income above £50,000.
• Record-keeping threshold: If your qualifying income exceeds £90,000, you'll need to keep more detailed digital records with fuller categorisation of income and expenses.

MTD threshold timeline

Making Tax Digital for Income Tax is being rolled out in three phases based on qualifying income. The thresholds and mandate dates are:

Once mandated, you cannot opt out until your qualifying income falls below the threshold for three consecutive tax years. Your qualifying income is reassessed every tax year — if it rises above a threshold in any year, you become mandated from that year's date.

What counts (and doesn't count) as qualifying income

The most common mistake is assuming all income counts toward the MTD threshold. It doesn't. Qualifying income is narrowly defined as self-employment turnover plus property income — both gross, before expenses.

This means a sole trader with £40,000 self-employment income and £30,000 PAYE income has qualifying income of £40,000 — not £70,000. They'd be in Phase 2 (mandated from April 2027), not Phase 1, despite total income exceeding £50,000.

Worked examples

Sole trader with property income: £45,000 self-employment + £8,000 property

Qualifying income = £45,000 + £8,000 = £53,000. This exceeds the £50,000 Phase 1 threshold, so you're mandated from 6 April 2026. You cannot volunteer early because you're already in the first mandated phase. Your qualifying income also exceeds £90,000? No — £53,000 is below the £90,000 record-keeping threshold, so standard digital records suffice.

Sole trader with PAYE: £35,000 self-employment + £25,000 PAYE

Qualifying income = £35,000 (self-employment only — PAYE doesn't count). Total income is £60,000, but the threshold test uses qualifying income only. £35,000 is above the £30,000 Phase 2 threshold, so you're mandated from 6 April 2027. You can volunteer to start early from 6 April 2026 if you want to get used to the system before it becomes mandatory.

Landlord with no self-employment: £0 self-employment + £28,000 property

Qualifying income = £0 + £28,000 = £28,000. This is above the £20,000 Phase 3 threshold, so you're mandated from 6 April 2028. You can volunteer from 6 April 2026. Property income alone counts — you don't need self-employment income to be caught by MTD.

What happens once you're mandated

If the calculator shows you're mandated, you'll need to:

• Register for MTD with HMRC before your mandate date. See our guide on how to register for MTD.
• Use MTD-compatible software to keep digital records and submit quarterly updates. See our cheapest MTD software guide for options.
• Submit quarterly updates of your income and expenses, plus an end-of-period statement and final declaration. See our MTD quarterly updates guide.
• Keep digital records from the start of the tax year you're mandated. If your qualifying income is over £90,000, you'll need fuller categorisation.

For the full preparation checklist, see our MTD readiness checklist.

This calculator provides estimates based on current HMRC MTD rules. Thresholds and dates may change. Always refer toHMRC's official MTD eligibility guidance.