MTD questions, answered

Sole traders and landlords registered for Self Assessment whose qualifying income from self-employment and property is over the threshold for the relevant tax year. HMRC guidance.

Your total self-employment and property income before expenses (turnover). Employment (PAYE) income, dividends, pensions and your share of partnership profit do not count. HMRC guidance.

No. HMRC says all listed software has been through its recognition process, but it does not recommend any product. HMRC guidance.

Yes. You still submit a Self Assessment return for the tax year before you start using MTD, and once you are using MTD you submit your tax return through your software by 31 January following the tax year. HMRC, HMRC software guidance.

From 6 April 2026 if over £50,000 in 2024 to 2025; 6 April 2027 if over £30,000 in 2025 to 2026; 6 April 2028 if over £20,000 in 2026 to 2027. HMRC.

It's still your responsibility to check if and when you need MTD and to sign up. HMRC.

Once you've started, if your qualifying income drops below the threshold for 3 tax years in a row, you can choose to opt out. HMRC.

For sole traders, HMRC annualises qualifying income where it has the information. For example, 6 months' trading is doubled. Landlords must annualise property income themselves. HMRC.

Not yet. HMRC says partnerships will need to use MTD in future, with a timeline to be set out later. HMRC.

Some people are, for example if digitally excluded. Exempt people still file a Self Assessment return. HMRC.

You must be registered for Self Assessment and have submitted a return in the last 2 years. Choose software first, then sign up with HMRC.