MTD Thresholds Explained: Income Limits, Phased Dates & What Counts
7 April 2026
The MTD threshold is based on your gross income from self-employment and property combined — not your profit — so you may be in scope
The MTD threshold is based on your gross income from self-employment and property combined — not your profit — so you may be in scope
Quarterly reporting under MTD is not a quarterly tax payment: it’s a running summary of income and expenses sent to HMRC four times a year,
Your VAT return is due one calendar month and seven days after the end of each accounting period. It must be filed through MTD-compatible software,
Once your income exceeds £100,000, HMRC withdraws your personal allowance at £1 for every £2 earned above that threshold — pushing your effective tax rate
If you live in the UK and do the work here, you pay UK tax on income from US clients: US withholding tax should not
An MTD digital link means your VAT data must pass between systems without any manual steps — no copy-paste, no retyping — and breaking that
HMRC taxes dividends based on when they’re paid, not when they’re declared. This means dividends from one company financial year can fall across two different
Since Brexit, the VAT rules for selling from the UK to the EU have become complex, so you might be right in asking the question:
Double tax relief stops you paying full income tax twice on the same foreign income — once in the country where it arises, and again
An HMRC compliance check is a routine review of your tax records — not an accusation — and most are resolved quickly when you respond