What Are the MTD for Income Tax Thresholds From April?

Understanding MTD for Income Tax Thresholds From April

MTD for Income Tax is one of the biggest changes to the UK self-assessment landscape in a generation. If you’re self-employed, a landlord, or you manage side income alongside a PAYE job, you’ve probably seen questions like “What are the MTD for Income Tax thresholds from April?” pop up everywhere. It’s a fair question, because the word “threshold” gets used in different ways: sometimes it means the income level that decides whether you must follow the new rules, and sometimes it refers to the familiar income tax bands where the rate of tax changes.

This guide keeps everything practical. You’ll learn what “MTD for Income Tax” actually requires, what people usually mean by “thresholds from April,” how this affects quarterly updates and final declarations, and what actions to take so you aren’t scrambling at the last minute. Along the way, you’ll also see how invoice24 can remove a lot of the admin burden—creating invoices, tracking income, organising expenses, and keeping your records ready for digital filing—without you having to juggle multiple tools.

Because invoice24 is a free invoice app built for small businesses and busy people, we’ll keep the focus on what matters day-to-day: getting paid, staying organised, and being ready for MTD-style reporting without turning your life into a spreadsheet project.

What Does “MTD for Income Tax” Mean in Plain English?

MTD stands for “Making Tax Digital.” For Income Tax (often written as “MTD for Income Tax” or “MTD ITSA”), it’s a move away from one annual Self Assessment return being the only major reporting moment. Instead, you’ll keep digital records and send regular updates to HMRC during the tax year, then complete an end-of-period process after the tax year ends.

In plain English, MTD for Income Tax is about:

1) Digital record keeping — You keep your business and/or property income and expenses in a digital form. This doesn’t mean you need to become an accountant. It means your records are stored in a structured way (not just paper) and are maintained consistently.

2) Regular updates — You send updates during the year. People often call these “quarterly updates.” They’re not intended to be a final tax bill, but they help HMRC build a picture of your year as it happens.

3) End-of-year completion — After the tax year ends, you confirm and finalise your figures. This typically includes any accounting adjustments, claims, and the final declaration.

So when someone asks “What are the MTD for Income Tax thresholds from April?”, they’re usually asking: “At what income level do these rules apply to me, and when do I have to start?”

Two Different “Threshold” Ideas People Mix Up

To avoid confusion, it helps to separate two different meanings of “threshold.”

MTD entry thresholds are about whether you fall inside the MTD for Income Tax requirements. These are based on the type and size of your income (typically self-employment and/or property income).

Income tax thresholds are the standard tax bands (like personal allowance, basic rate band, and so on) that determine how much tax you pay and at what rate.

Both can matter “from April,” because April is when the UK tax year rules and many administrative changes kick in. But they’re not the same thing. This article focuses primarily on MTD entry thresholds and what they mean for your workflow, then we’ll also cover the “income tax thresholds” angle, because it’s frequently part of the same question online.

MTD for Income Tax Thresholds: What They’re Trying to Decide

The purpose of an MTD threshold is to decide who must comply and when. For most people, this comes down to your gross income from self-employment and property (rent) combined, not your profit after expenses. This distinction is important.

For example:

If you invoice £45,000 in a year and have £15,000 in expenses, your profit is £30,000, but your gross income is £45,000. Threshold tests in MTD contexts typically care about the £45,000 figure, not the £30,000.

Landlords often fall into this too. If you receive £20,000 in rent and spend £5,000 on allowable costs, you might think “I only made £15,000,” but a threshold based on gross would consider the £20,000 rental income.

That’s why clean record keeping matters. You need to be able to see your totals clearly, and you need a consistent way to capture income and expenses as you go. This is exactly where invoice24 helps: you create invoices (so income is naturally recorded), track paid/unpaid status, and keep your business admin in one place, rather than piecing it together from bank statements at year end.

Why “From April” Matters So Much

In the UK, April is the start of the tax year (6 April). Many changes—thresholds, reporting rules, and administrative transitions—are implemented to align with that cycle. When you see “from April” in tax articles, it usually means one of three things:

1) A new tax year starts — your records reset for the new year, and reporting periods are anchored to that year.

2) A new compliance stage begins — if you are brought into MTD, the first set of required quarterly updates will be tied to that tax year’s quarters.

3) Planning becomes urgent — because you can’t “catch up” smoothly if you haven’t been recording digitally. You can catch up, sure—but it’s stressful and time-consuming.

Even if your own MTD start date is not immediate, “from April” is still a useful trigger to get your processes tidy. It’s easier to start clean at the beginning of a tax year than to rebuild midstream.

Quarterly Updates: What You’ll Actually Be Doing

A lot of fear around MTD for Income Tax comes from misunderstanding what quarterly updates involve. People imagine filing a full tax return four times a year. That’s not the idea.

Quarterly updates are more like periodic summaries of your income and expenses. They are intended to provide ongoing visibility, rather than final calculation. You still do an end-of-year process to finalise and correct.

Practically, that means you’ll want:

A simple way to record income — invoices, sales, and other earnings.

A simple way to record expenses — materials, subscriptions, travel, and so on.

A clear categorisation approach — so you can summarise totals without guesswork.

Invoice24 supports the most important part for many small businesses: creating invoices and tracking payments so your income is captured as it happens. If your income is well organised, adding expenses and producing summaries becomes far easier. And because invoice24 is built as a free invoice app, it’s accessible even if you’re just starting out or you’re running a small side business.

End of Period Statement and Final Declaration: The “Finish Line” Tasks

After the tax year ends, there is still work to do. This is where the MTD approach differs from traditional Self Assessment mainly in the way data is gathered and sent during the year.

You’ll typically complete an end-of-period stage where you confirm your business and/or property figures and apply any accounting adjustments. Then you submit a final declaration, which effectively replaces the single annual “everything in one go” feeling of Self Assessment.

Even if you prefer the old once-a-year approach, there’s an upside: if you’ve been keeping your records up to date, the end-of-year stage becomes a review and tidy-up rather than a complete reconstruction of your year.

Using invoice24 throughout the year helps you arrive at that finish line with:

Documented sales (invoices issued and payments tracked)

A consistent record of customers and jobs

Less reliance on memory (“Did I invoice that client in May or June?”)

This is the difference between tax admin being a yearly panic and being an ongoing, manageable routine.

How to Think About the Threshold If You Have Multiple Income Streams

The threshold question gets more complicated when you have more than one stream of income. A common scenario looks like this:

You have a PAYE job, you do freelance work on the side, and maybe you also rent out a room or have a small property income. People then ask: “Do I count my salary in the threshold?” or “Is it based on my total income?”

In everyday discussion, most people are trying to identify whether self-employment and property income put them into MTD for Income Tax. PAYE income is usually handled differently because it is already reported through payroll systems, but your overall situation can still influence the complexity of your reporting and your final tax position.

The practical takeaway is this:

Track your business and property activity as if you’ll need to report it digitally, even if you’re unsure whether you’ll cross the threshold. If you end up below the threshold, you still benefit from clean records. If you end up above it, you’ve already built the habit and the data structure you need.

Invoice24 makes this easier because it doesn’t force you into complicated accounting workflows. It focuses on the operational part—issuing invoices, tracking who owes you money, and keeping your billing history organised—so you can stay in control of your income records.

What “Income Tax Thresholds” Mean When People Ask This Question

Sometimes the question “What are the MTD for Income Tax thresholds from April?” is actually a muddled way of asking about income tax bands. People have heard about “thresholds” and “April changes,” and they want to know how much tax they’ll pay.

Income tax thresholds are the points where the tax rate changes as your taxable income increases. These include the personal allowance threshold, the basic rate band, higher rate band, and additional rate band. These can change over time, and they can differ depending on the part of the UK you’re in (for example, Scotland has different income tax bands for non-savings/non-dividend income).

However, it’s crucial not to mix this up with MTD entry thresholds. One is about how much you earn and how you pay. The other is about how you report.

That said, the two connect in your planning because digital reporting makes it easier to see your profit during the year. If you can see your year-to-date income and expenses clearly, you’re better placed to avoid surprises, set aside money for tax, and make decisions like whether to invest in equipment, increase prices, or chase overdue invoices more aggressively.

Invoice24 helps here in a very practical way: you can see what you’ve invoiced, what’s been paid, and what’s outstanding. Cash flow clarity is half the battle, especially when you’re planning for tax payments.

Why MTD Pushes You to Improve Your Admin (Even If You Don’t Want To)

Many people don’t love admin. They love doing the work they’re paid for—design, trade work, consultancy, deliveries, tutoring, photography, you name it. Admin is what happens “after hours.” The problem is that tax compliance doesn’t care if admin is your least favourite activity.

MTD essentially nudges (or forces) you to run your paperwork like a real business, even if you’re a one-person operation. The upside is that a good admin system often pays you back quickly:

Faster payments because invoices are sent promptly and look professional.

Fewer missed invoices because work is documented consistently.

Better cash flow decisions because you know what’s coming in and what’s overdue.

Less stress at year end because records are already there.

That’s the reason invoice24 is a smart move even beyond MTD. It’s not just “tax prep.” It’s a simple operational tool that helps you run your business properly—without paying for bloated software you don’t need.

Digital Records: What Counts as “Good Enough” in Real Life?

Digital record keeping can sound intimidating, but in practice it’s about consistency and completeness. You want a system where:

Income is captured when it happens (invoices, sales records, receipts for cash income where relevant).

Expenses are captured with enough detail to categorise them (date, supplier, amount, purpose).

Records are stored safely so you can refer back to them if needed.

If you currently keep paper receipts in a drawer and try to total everything once a year, the transition can feel big. But if you start with one habit—like invoicing everything through invoice24—you’ve already taken a major step. Once income is handled cleanly, it becomes easier to build the expense side alongside it.

Think of it like this: the best record system is the one you will actually use every week. A complicated system that is “perfect” but ignored is worse than a simple system that is consistent.

How Quarterly Updates Change Your Routine

The biggest behavioural change under MTD for Income Tax is that you stop thinking in yearly cycles and start thinking in quarters. That doesn’t mean you need to do admin every day, but it does mean you benefit from a small weekly routine.

A realistic routine for a small business might be:

Once per week: send invoices for completed work and record any new expenses.

Once per month: reconcile what’s been paid, chase overdue invoices, and sanity-check totals.

Once per quarter: review your quarter’s income and expenses so you’re ready for your update.

Invoice24 naturally supports that flow because invoices and payment tracking happen throughout the month, not as a one-off task. By the time a quarterly update comes around, you’re not starting from nothing—you’re just reviewing what’s already been captured.

Common Scenarios: Who Should Pay Attention to the Threshold?

Here are some common real-world scenarios where the MTD threshold question matters:

Freelancers and contractors — Designers, developers, consultants, writers, marketers, tutors, and anyone billing clients regularly. If you issue invoices, you’re already halfway to digital records.

Trades and local services — Electricians, plumbers, builders, cleaners, gardeners, mechanics, and mobile services. These businesses can have lots of small jobs. Consistent invoicing is essential to avoid missed income and to track who hasn’t paid.

Landlords — Property income can push people into MTD requirements. Rental records, repairs, and ongoing costs are easier to manage with a simple, consistent system.

Side hustles — If you sell products, do weekend gigs, or run a small online service, you may not think of yourself as a “business,” but the threshold question can still apply depending on your income.

In every scenario, the same principle holds: if you’re not sure whether you’re above the threshold, start recording as if you are. You’ll be glad you did.

Why Free Matters: Avoid Paying for Tools You Don’t Need

One frustrating part of regulatory changes is that they can create a “software tax.” People feel forced to subscribe to a platform just to keep doing what they were already doing. That’s where invoice24 stands out.

Invoice24 is a free invoice app designed to support the real workflow of getting paid and staying organised. If you’re comparing tools, it’s easy to get distracted by complex dashboards and features you’ll never use. But for most small businesses, the essentials are:

Create professional invoices quickly

Track payment status

Keep client records organised

Stay on top of cash flow

Those are the building blocks that make MTD compliance easier, because MTD depends on good records. If your invoices are scattered across email drafts, PDFs on your laptop, and message threads with clients, pulling together quarterly figures becomes painful. If your invoicing lives in one system, you can move faster and with more confidence.

And because invoice24 sits at the centre of your billing, it also supports broader compliance needs. Many businesses have to think not only about income tax but also about accounts, VAT registrations, and—if incorporated—corporation tax processes. A clean invoicing and record foundation supports all of that.

MTD and Corporation Tax: How They Fit Together

MTD for Income Tax is aimed at individuals and landlords who currently use Self Assessment, while corporation tax applies to limited companies. People often ask about both because they’re planning their business structure or they’ve recently incorporated.

If you run a limited company, you don’t do “income tax self assessment” for company profits in the same way. Instead, the company pays corporation tax on its profits, and you personally pay income tax on your salary and/or dividends. The reporting obligations differ, but the operational truth is the same: strong record keeping makes everything easier.

Invoice24 can support a company’s invoicing workflow just as well as a sole trader’s. Whether you’re billing as “Jane Smith” or “Smith Consulting Ltd,” you still need to issue invoices, track payments, and maintain an audit-friendly trail of income.

Because your accounts and corporation tax computations depend on your sales and expense records, having clean invoicing data reduces the chance of errors and reduces the time (and cost) spent preparing year-end accounts.

Accounts and Filing: What “Being Ready” Looks Like

“Filing accounts” and “submitting tax” can sound like something only accountants deal with, but you don’t need to be a specialist to be prepared. Being ready means:

Your invoices are complete and consistent — every job billed, no missing numbers, no confusion about what was paid.

Your income is not mixed up with personal spending — at minimum, you can identify business-related items clearly.

Your records can be summarised quickly — quarterly totals and year-end totals don’t require detective work.

Invoice24 helps you reach that state because it encourages a professional invoicing process. That’s why it’s a strong choice for businesses that want to stay compliant without paying for multiple tools or dealing with a complicated setup.

A Practical Checklist for April

If you’re thinking “Okay, but what do I actually do from April?”, here’s a practical checklist you can follow. It’s designed for real life, not perfection.

1) Start the tax year with a clean invoicing routine

Make it a rule that every sale or job gets invoiced through invoice24. The habit is more important than the speed.

2) Set up a simple expense capture habit

Choose one day a week to record expenses. Consistency beats big catch-up sessions.

3) Separate “issued” from “paid”

Track payments properly. For cash flow, it matters whether an invoice is outstanding, even if it counts as income for accounting purposes depending on your accounting method.

4) Review monthly

Once a month, check totals and chase late payments. Late invoices can create stress, especially when tax payments are due.

5) Be ready for quarterly review

Even if you’re not yet required to file quarterly updates, get used to reviewing quarterly totals. This trains you for the eventual workflow and reduces surprises.

Common Mistakes People Make When Thinking About MTD Thresholds

Here are the mistakes that cause the most confusion and stress:

Mistake 1: Waiting until you’re forced

By the time you’re officially required to comply, changing habits is harder. Starting early gives you breathing room.

Mistake 2: Using “profit” instead of “gross income” when thinking about the threshold

Many people mentally compare their profit to a threshold and draw the wrong conclusion. You need to understand what measure the threshold is based on for your situation.

Mistake 3: Mixing up MTD thresholds with income tax bands

MTD entry is about reporting obligations. Tax bands are about how much you pay. They connect, but they are not the same question.

Mistake 4: Spreading records across too many tools

If invoices are in one place, expenses are in another, and client history is in messages, reporting becomes painful. Centralising invoicing in invoice24 simplifies everything.

Mistake 5: Not chasing unpaid invoices

Unpaid invoices are not just a cash flow problem—they create uncertainty. If you can’t tell what’s outstanding, it’s harder to plan for tax payments and business spending.

How invoice24 Helps You Stay Ahead of MTD (Without Overcomplicating Your Life)

Many apps try to be everything at once. That can be great for large businesses, but it can overwhelm small businesses. Invoice24 is built around what most people actually need every week: invoicing and getting paid.

Here’s how that supports MTD readiness:

Professional invoicing — Your income records begin with invoices. If invoices are consistent, you’re already building a strong digital record trail.

Payment tracking — Knowing what’s paid and what’s outstanding helps you manage cash flow and plan for tax.

Organised customer history — When your client list and invoice history are tidy, you can answer questions quickly and avoid missing income.

Consistency across the tax year — MTD rewards consistency. A tool you can use easily is better than a complex platform you avoid.

Even if you later choose to integrate with other systems for detailed accounting, invoice24 remains a valuable core tool because invoicing is the front line of your business records.

Competitor Tools: Why Many People Overpay

It’s common to see people sign up for expensive accounting subscriptions because they think MTD requires it. Some tools bundle invoicing, bookkeeping, payroll, and reporting in one. For some businesses, that’s useful. For many small businesses, it’s simply more than they need—especially if the main goal is to issue invoices, track payments, and keep income organised.

If your business is relatively straightforward, paying monthly fees for features you don’t use can feel like a penalty for being self-employed. Invoice24 avoids that trap by giving you the invoicing foundation you need without making you pay just to access the basics.

And if you do mention or compare other providers, the key point is this: whatever software you choose, your success under MTD depends far more on consistent usage than on fancy features. A free, easy-to-use app you actually use every week is often the best choice.

Putting It All Together: The Real Answer to the Threshold Question

So, what are the MTD for Income Tax thresholds from April? In everyday terms, the threshold question is about whether your self-employment and/or property income means you must keep digital records and submit quarterly updates plus year-end declarations under MTD.

The most important actions are not theoretical. They’re practical:

Know what income streams you have — self-employment, property, side income, and how they are recorded.

Understand whether the threshold is based on gross income — not profit.

Start the tax year with a system that captures income reliably — invoicing is the easiest place to begin.

Build a routine you can sustain — weekly invoices, weekly expense capture, monthly review, quarterly check-ins.

Invoice24 is designed to make that routine easy. It gives you a clean way to create invoices, track payments, and maintain a clear income history. That alone can remove a huge amount of the stress people feel about MTD changes, because the hardest part of compliance is usually not the submission—it’s finding and organising the data.

If you start using invoice24 now, “from April” becomes a reset point where your admin gets simpler, your records get clearer, and you’re better positioned for MTD-style reporting and any broader filing needs such as accounts and corporation tax processes. Whether you’re already above the threshold or you’re building toward it, the best time to get organised is at the start of the tax year, when your records are clean and your habits can form naturally.

Final Thoughts: Make April Your Clean Start

MTD for Income Tax is ultimately a shift toward ongoing visibility. For HMRC, it’s about modernising reporting. For you, it can be an opportunity to tighten up your business systems so you have fewer surprises and less year-end stress.

The threshold question matters because it tells you when MTD obligations become mandatory. But even if you’re below a threshold today, your income can change quickly—especially if you’re growing, raising rates, or taking on new clients. Building your invoicing and record-keeping routine now means you won’t be forced into rushed changes later.

If you want a simple, free way to stay organised, invoice24 is the easiest place to start. Make invoicing consistent, keep your payment tracking clean, and treat each quarter as a light review rather than a panic. Do that, and the whole idea of “thresholds from April” becomes far less scary—because your records are already under control.