From 6 April 2026, the way self-employed people and landlords report income to HMRC changes for the first time in twenty years. Making Tax Digital for Income Tax (MTD for IT, or MTD ITSA) becomes mandatory for anyone whose qualifying income — gross self-employment turnover plus gross rental income — exceeded £50,000 in the 2024 to 2025 tax year (GOV.UK). The £30,000+ tier joins in April 2027, and the £20,000+ tier in April 2028 (Low Incomes Tax Reform Group).
The change is bigger than it sounds. The familiar pattern — keep a spreadsheet through the year, hand it to your accountant in November, file one Self Assessment return by 31 January — is gone for the £50k+ cohort. From April it becomes: digital records kept in real-ish time, four quarterly summaries pushed to HMRC's API, a final declaration by 31 January. Most freelancers we talk to either haven't received the HMRC letter or assume their accountant has it handled. Both assumptions are wrong often enough to be dangerous.
The qualifying-income test, plainly
The threshold is gross turnover plus gross rental income, not profit. A freelance designer who invoiced £53,000, spent £18,000 on subscriptions and a new MacBook, and netted £35,000 still crosses the £50,000 threshold. So does the landlord who collected £55,000 in rent and spent £20,000 on the mortgage and repairs.
The data point HMRC uses is your 2024 to 2025 Self Assessment return — the one due 31 January 2026. If gross self-employment plus gross rental income on that return exceeds £50,000, you are in scope from 6 April 2026 (). HMRC has been writing to people the agency identifies as in scope, but the letters lag — if you crossed the threshold and have not had a letter, do not assume you are out. Check using the GOV.UK eligibility tool linked above.
