{"id":10257,"date":"2026-07-30T15:08:41","date_gmt":"2026-07-30T14:08:41","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=10257"},"modified":"2026-07-30T16:13:59","modified_gmt":"2026-07-30T15:13:59","slug":"making-tax-digital-thresholds-vat-itsa-corporation-tax","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-thresholds-vat-itsa-corporation-tax\/","title":{"rendered":"Making Tax Digital thresholds: VAT and Income Tax"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tMaking Tax Digital thresholds: VAT and Income Tax\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tUnderstand the current Making Tax Digital thresholds for VAT and Income Tax, including who needs to comply, when each phase starts, and what digital reporting means for sole traders, landlords, and VAT-registered businesses. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-30T15:08:41+01:00\">30 July, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Making Tax Digital thresholds: VAT and Income Tax\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-thresholds-vat-itsa-corporation-tax\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Making Tax Digital (MTD) is HMRC\u2019s&nbsp;programme&nbsp;for moving tax record-keeping and reporting into compatible digital software.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The thresholds matter because they decide when a business, sole trader, or landlord must follow MTD rules for VAT or Income Tax.&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained is-style-jade\"><div class=\"sage-container__inner\">\n<h3 id=\"h-key-takeaways-nbsp\" class=\"wp-block-heading\"><strong>Key takeaways<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital (MTD)<\/a>&nbsp;rules already apply to VAT-registered businesses for VAT returns.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MTD for Income Tax is being introduced in phases for sole traders and landlords based on qualifying income.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Income Tax thresholds are \u00a350,000 from 6 April 2026, \u00a330,000 from 6 April 2027, and \u00a320,000 from 6 April 2028.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you are in scope for MTD for Income Tax, you need to keep digital records and use compatible software to send updates to HMRC.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MTD for&nbsp;Corporation Tax is not&nbsp;proceeding, so the current MTD rollout covers VAT and Income Tax.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article explains the current MTD thresholds, the rollout dates, who is affected, and what you may need to do next.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-are-making-tax-digital-thresholds\" data-level=\"2\">What are&nbsp;Making&nbsp;Tax Digital thresholds?<\/a><\/li><li><a href=\"#h-who-does-making-tax-digital-apply-to\" data-level=\"2\">Who does Making Tax Digital&nbsp;apply to?<\/a><\/li><li><a href=\"#h-what-are-the-mtd-for-vat-thresholds-and-requirements\" data-level=\"2\">What are the MTD for VAT thresholds and requirements?<\/a><\/li><li><a href=\"#h-what-are-the-mtd-for-income-tax-thresholds-by-year\" data-level=\"2\">What are the MTD for Income Tax thresholds&nbsp;by&nbsp;year?<\/a><\/li><li><a href=\"#h-what-do-you-need-to-do-under-mtd-for-income-tax\" data-level=\"2\">What do you need to do under MTD for Income Tax?<\/a><\/li><li><a href=\"#h-who-can-apply-for-a-making-tax-digital-exemption\" data-level=\"2\">Who can apply for a Making Tax Digital exemption?<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-frequently-asked-questions-on-mtd-thresholds\" data-level=\"2\">Frequently asked questions on MTD&nbsp;thresholds<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-are-nbsp-making-nbsp-tax-digital-thresholds-nbsp\" class=\"wp-block-heading\"><strong>What are&nbsp;Making&nbsp;Tax Digital thresholds?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Making Tax Digital thresholds are the income or registration limits that decide when you need to follow MTD rules. For VAT, the key point is simple:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your business is VAT registered, you must keep digital records and&nbsp;submit&nbsp;VAT Returns using compatible software.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For Income Tax, thresholds are based on qualifying income from self-employment, property, or both.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>MTD area<\/strong>&nbsp;<\/td><td><strong>Threshold limits<\/strong>&nbsp;<\/td><td><strong>Start date<\/strong>&nbsp;<\/td><td><strong>Who is affected<\/strong>&nbsp;<\/td><\/tr><tr><td>VAT&nbsp;<\/td><td>All VAT-registered businesses&nbsp;<\/td><td>From April 2019, with all VAT-registered businesses in scope from April 2022&nbsp;<\/td><td>VAT-registered businesses&nbsp;<\/td><\/tr><tr><td>Income Tax&nbsp;<\/td><td>\u00a350,000+ from 2026; \u00a330,000+ from 2027; \u00a320,000+ from 2028&nbsp;<\/td><td>6 April 2026; 6 April 2027; 6 April 2028&nbsp;<\/td><td>Sole traders and landlords with qualifying self-employment or property income&nbsp;<\/td><\/tr><tr><td>Corporation Tax&nbsp;<\/td><td>Not proceeding&nbsp;<\/td><td>\u2014&nbsp;<\/td><td>\u2014&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-who-does-making-tax-digital-nbsp-apply-to\" class=\"wp-block-heading\"><strong>Who does Making Tax Digital&nbsp;apply to?<\/strong><\/h2>\n\n\n\n<h3 id=\"h-making-tax-digital-for-vat\" class=\"wp-block-heading\">Making Tax Digital for VAT<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">All VAT-registered businesses must follow MTD rules for VAT.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means keeping digital VAT records and using compatible software to&nbsp;submit&nbsp;VAT Returns to HMRC.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-making-tax-digital-for-income-tax\" class=\"wp-block-heading\">Making Tax Digital for Income Tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-complete-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax<\/a>&nbsp;applies to sole traders and landlords who are registered for&nbsp;Self Assessment, receive income from self-employment or property, and have qualifying income above the relevant threshold for the tax year.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first phase started on 6 April 2026 for those above the \u00a350,000 threshold. Further phases begin on 6 April 2027 and 6 April 2028.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-making-tax-digital-for-corporation-tax\" class=\"wp-block-heading\">Making Tax Digital for Corporation Tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Corporation Tax is no longer&nbsp;proceeding.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means VAT and Income Tax are the taxes included in the current MTD rollout.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-what-are-the-mtd-for-vat-thresholds-and-requirements-nbsp\" class=\"wp-block-heading\"><strong>What are the MTD for VAT thresholds and requirements?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are VAT registered, you need to follow MTD rules for VAT. Under MTD for VAT, businesses must keep VAT records digitally and use functional compatible software to&nbsp;submit&nbsp;VAT Returns to HMRC.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you already pay by Direct Debit, avoid signing up too close to the date your VAT Return is due.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC&nbsp;advises Direct Debit payers not to&nbsp;sign up less than seven days before the return is due or five days after it is due, to reduce the risk of duplicate payments.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: Your Guide to MTD for Income Tax<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Our free guide is written by experts and is all you need as a sole trader or landlord to understand what MTD means for your business\u2014and how to ensure you&#8217;re ready in time.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-626d6b26-aa95-4f75-a5a0-9cce8bff833f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Your Guide to MTD for Income Tax<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/cta-mtd-guide.jpg\" class=\"single-cta__image\" alt=\"A woman reading a guide about MTD for Income Tax\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/cta-mtd-guide.jpg 800w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-what-are-the-mtd-for-income-tax-thresholds-nbsp-by-nbsp-year-nbsp\" class=\"wp-block-heading\"><strong>What are the MTD for Income Tax thresholds&nbsp;by&nbsp;year?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax is being introduced in phases.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your start date depends on your qualifying income, which covers income from self-employment, property, or both.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threshold is assessed against the relevant tax year, so it is important to&nbsp;check&nbsp;the latest HMRC guidance or speak to your tax adviser if you are unsure whether you are in scope.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Start date<\/strong>&nbsp;<\/td><td><strong>Income threshold<\/strong>&nbsp;<\/td><td><strong>Relevant income test<\/strong>&nbsp;<\/td><td><strong>Who this affects<\/strong>&nbsp;<\/td><\/tr><tr><td>6 April 2026&nbsp;<\/td><td>Over \u00a350,000&nbsp;<\/td><td>Qualifying income for 2024 to 2025&nbsp;<\/td><td>Sole traders and landlords above the first threshold&nbsp;<\/td><\/tr><tr><td>6 April 2027&nbsp;<\/td><td>Over \u00a330,000&nbsp;<\/td><td>Qualifying income for 2025 to 2026&nbsp;<\/td><td>Sole traders and landlords above the second threshold&nbsp;<\/td><\/tr><tr><td>6 April 2028&nbsp;<\/td><td>Over \u00a320,000&nbsp;<\/td><td>Qualifying income for 2026 to 2027&nbsp;<\/td><td>Sole traders and landlords above the third threshold&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-what-do-you-need-to-do-under-mtd-for-income-tax-nbsp\" class=\"wp-block-heading\"><strong>What do you need to do under MTD for Income Tax?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are in scope for MTD for Income Tax, you need to keep digital records of your business income and expenses and send updates to HMRC using MTD-compatible software.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep digital records for your business income and expenses.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Send&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-updates-listicle\/\" target=\"_blank\" rel=\"noreferrer noopener\">quarterly updates to HMRC<\/a>&nbsp;using functional compatible software.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Submit a year-end&nbsp;finalisation&nbsp;after the tax year, including any business-specific and personal tax adjustments that are needed.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Check whether your current accounting process, spreadsheet setup, or software can support MTD requirements before your start date.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The year-end&nbsp;finalisation&nbsp;has two parts.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, you&nbsp;submit&nbsp;a Business Source Adjustable Summary to add any year-end business details, such as capital allowances, and confirm the information is complete and&nbsp;accurate&nbsp;for that business.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Second, you&nbsp;submit&nbsp;any taxpayer-level adjustments, such as personal claims or allowances, and&nbsp;confirm&nbsp;the information is complete and&nbsp;accurate&nbsp;for you as an individual.<\/p>\n\n\n\n<h2 id=\"h-who-can-apply-for-a-making-tax-digital-exemption-nbsp\" class=\"wp-block-heading\"><strong>Who can apply for a Making Tax Digital exemption?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC considers MTD exemptions on a case-by-case basis.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may be able to apply if it is not reasonable or practical for you to use digital tools to keep records or&nbsp;submit&nbsp;returns.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples may include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>disability,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>location,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>religious reasons,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>or&nbsp;another practical barrier to using computers, software, or the internet.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you are exempt, you still need to meet your tax reporting obligations in the way HMRC requires.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should check the relevant HMRC guidance before assuming an exemption applies.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-final-thoughts-nbsp\" class=\"wp-block-heading\"><strong>Final thoughts&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding MTD thresholds helps you&nbsp;plan ahead, choose the right software, and avoid last-minute compliance pressure.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your VAT registration or qualifying income puts you in scope, the most useful next step is to check your current record-keeping process and confirm when you need to start using compatible software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;you&#8217;re&nbsp;a sole trader, learn more about&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/self-assessment-ending-making-tax-digital-sole-traders\" target=\"_blank\" rel=\"noreferrer noopener\">self-assessment ending and Making Tax Digital<\/a>. Landlords can find out what they need to know about&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/self-assessment-making-tax-digital-income-tax-landlords\" target=\"_blank\" rel=\"noreferrer noopener\">self-assessment and Making Tax Digital for Income Tax<\/a>. You may also want to understand&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-switching-from-self-assessment-explained\" target=\"_blank\" rel=\"noreferrer noopener\">switching from self-assessment to MTD for Income Tax<\/a>&nbsp;and be aware of potential&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-penalty-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC penalties under Making Tax Digital<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor\u2019s note: This article was first published in November 2021 and has been updated for relevance, GEO structure, and source clarity.<\/em>&nbsp;<\/p>\n\n\n\n<h2 id=\"h-frequently-asked-questions-on-mtd-nbsp-thresholds-nbsp\" class=\"wp-block-heading\"><strong>Frequently asked questions on MTD&nbsp;thresholds&nbsp;<\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1785420322697\"><strong class=\"schema-faq-question\"><strong>What is the threshold for Making Tax Digital?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">For VAT, all VAT-registered businesses must follow MTD rules.\u00a0\u00a0<br>For Income Tax, MTD applies in phases to\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-sole-traders\/\" target=\"_blank\" rel=\"noreferrer noopener\">sole traders<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-landlords-need-to-know\/\" target=\"_blank\" rel=\"noreferrer noopener\">landlords<\/a>\u00a0with qualifying income over \u00a350,000 from 6 April 2026, over \u00a330,000 from 6 April 2027, and over \u00a320,000 from 6 April 2028.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785420333419\"><strong class=\"schema-faq-question\"><strong>What income counts towards the MTD for Income Tax threshold?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">The threshold is based on qualifying income from self-employment, property, or both.\u00a0\u00a0<br>If you are unsure what counts for your circumstances, check HMRC guidance or speak to your tax adviser.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785420347474\"><strong class=\"schema-faq-question\"><strong>Does employment income count towards the MTD for Income Tax threshold?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">MTD for Income Tax is focused on self-employment and property income for sole traders and landlords.\u00a0\u00a0<br>Employment income is not the main income type covered by the thresholds in this article.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785420363788\"><strong class=\"schema-faq-question\"><strong>What is included in turnover for the VAT threshold?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">VAT taxable turnover is the total value of sales that\u00a0are\u00a0not exempt from VAT during a rolling 12-month period.\u00a0\u00a0<br>This can include goods hired or loaned to customers, business goods used for personal reasons, part-exchanged goods, certain reverse-charge services, and some building work a business does for itself.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785420379233\"><strong class=\"schema-faq-question\"><strong>Is MTD for Corporation Tax still happening?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">No. HMRC has said\u00a0MTD for\u00a0Corporation Tax will not\u00a0proceed, so the current MTD rollout covers VAT and Income Tax.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785420387611\"><strong class=\"schema-faq-question\"><strong>What should I do if\u00a0I think I\u00a0am exempt from MTD?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">Check\u00a0the relevant HMRC exemption guidance before your start date.\u00a0\u00a0<br>Exemptions are not automatic in every\u00a0case\u00a0and HMRC considers each request based on the circumstances.<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor\u2019s note: This article was first published in November 2021 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">E-Book: Your Guide to MTD for Income Tax<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Our free guide is written by experts and is all you need as a sole trader or landlord to understand what MTD means for your business\u2014and how to ensure you&#8217;re ready in time.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-626d6b26-aa95-4f75-a5a0-9cce8bff833f\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get Your Guide to MTD for Income Tax<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/cta-mtd-guide.jpg\" class=\"single-cta__image\" alt=\"A woman reading a guide about MTD for Income Tax\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/cta-mtd-guide.jpg 800w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/mtd-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for businesses\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/vat\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tVAT\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-10151 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:48:56+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-business-tame-tax\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tMaking Tax Digital: how MTD for VAT helps your business tame tax\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tTax can be time-consuming for small businesses. Making Tax Digital (MTD) for VAT helps you keep digital records, use compatible software, and submit VAT Returns to HMRC more efficiently.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-10038 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-needs-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg\" class=\"card-post__image\" alt=\"Checking products to sell to customers\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:20:19+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\t6 things you need to know about Making Tax Digital for Income Tax\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-10211 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountant-accounting tag-accountant-tax tag-accountants-online-hub-gb tag-business-finances tag-mtd-accountants tag-mtd-business tag-making-tax-digital-for-income-tax tag-making-tax-digital-for-vat tag-need-to-know tag-tax tag-vat business_type-small-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/hmrc-penalty-making-tax-digital\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T09:06:37+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for Income Tax penalties: HMRC&#8217;s new systems explained\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-10209 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-questions-answered\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media card-post__media--video\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1282134863-684x384.jpg\" class=\"card-post__image\" alt=\"Man working on laptop at desk and looking at business priorities\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1282134863-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1282134863-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1282134863-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__play-video\">\n\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" class=\"card-post__play-icon svg-icon\" width=\"28\" height=\"28\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 33 36\"><path d=\"M3.947.936C1.889 1.016 0 2.661 0 4.878v27.11c0 2.956 3.36 4.896 5.999 3.463l24.965-13.555c2.715-1.474 2.715-5.451 0-6.925L6 1.416a3.96 3.96 0 0 0-2.052-.48Zm.032 2.6c.232-.001.475.058.713.187L29.66 17.28c.986.535.986 1.774 0 2.309L4.692 33.144c-.952.517-1.999-.088-1.999-1.155V4.878c0-.533.261-.95.642-1.17.19-.11.411-.171.644-.172\" \/><\/svg>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M5.25 3C3.74 3 2.5 4.24 2.5 5.75v12.5C2.5 19.76 3.74 21 5.25 21h14c1.51 0 2.75-1.24 2.75-2.75V5.75C22 4.24 20.76 3 19.25 3zm0 1.5h14c.699 0 1.25.551 1.25 1.25v12.5a1.24 1.24 0 0 1-1.25 1.25h-14A1.24 1.24 0 0 1 4 18.25V5.75c0-.699.551-1.25 1.25-1.25m.25.75a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8.25 2.751A1.248 1.248 0 0 0 9 9.251v5.5c0 .442.231.849.613 1.074.389.231.846.237 1.239.021l5.001-2.751c.396-.219.646-.639.646-1.094s-.25-.876-.646-1.095l-.001-.001-5.002-2.751a1.25 1.25 0 0 0-.601-.153zM5.5 8.25a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8 1.423L14.731 12 10.5 14.328zm-5 1.577a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-30T16:58:15+01:00\">30 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for VAT: 19 key questions answered\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-25955 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-mtd-business tag-making-tax-digital-for-income-tax tag-tax business_type-small-business industry-construction\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-what-it-means-for-trades-and-skilled-workers\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-585283345-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-30T16:24:46+01:00\">30 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMTD for Income Tax: what it means for trades and skilled workers\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Understand the current Making Tax Digital thresholds for VAT and Income Tax, including who needs to comply, when each phase starts, and what digital reporting means for sole traders, landlords, and VAT-registered businesses. <\/p>\n","protected":false},"author":356,"featured_media":16464,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6,9],"tags":[30,206,27,28],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[142,109],"coauthors":[351],"class_list":["post-10257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-mtd-business","tag-need-to-know","tag-tax","tag-vat","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1313131450.jpg","imagine_tags":{"142":"Making Tax Digital for businesses","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice 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