MTD for Income Tax questions from clients aren't coming. They're already here. Since April 2026, sole traders and landlords above the £50,000 qualifying income threshold have been legally required to keep digital records and submit quarterly updates to HMRC. For most of your clients, this is the biggest change to how they manage their tax affairs in a decade.
And they're not reading the HMRC guidance. They're calling you.
This post is designed to be useful in two ways: as a reference for you, and as something you can send directly to the clients who keep asking the same five questions. Forward it, link to it, print it. Whatever works for your practice.
The 5 MTD Income Tax Questions Clients Are Asking Right Now
Question 1: "Do I actually have to do this?"
This is the most common starting point, and the anxiety behind it is usually about threshold confusion rather than genuine resistance.
The threshold for the April 2026 phase is £50,000 of qualifying income. Qualifying income means the gross income from self-employment plus gross income from UK property, combined. It is turnover, not taxable profit. A landlord earning £35,000 in rent with £20,000 in expenses still has qualifying income of £35,000 for MTD purposes.
The figure HMRC uses is from the most recent tax return filed before the mandation date. For the April 2026 phase, that means the 2024/25 return which reports gross qualifying income above £50,000 on the return filed by January 2026.
The phased rollout continues: above £30,000 from April 2027, and above £20,000 from April 2028. Clients who are currently below £50,000 but growing need to understand they may come into scope in future years.
One important exception worth flagging: a genuinely new business started during the 2025/26 tax year with no prior self assessment return does not come into MTD from April 2026, even if turnover exceeds £50,000 in that first year. The requirement is based on a declared return, not a projection.
The answer for clients: Check the gross income figure on your 2024/25 self assessment return, not your profits, your gross income. If it's above £50,000, you're in for 2026/27. If it's between £30,000 and £50,000, you'll join in April 2027 unless income changes.
Question 2: "What do I actually have to do differently?"
This question often arrives with a subtext of "how much more work is this going to be?"
