MTD readiness for 1–2 people practices

The entry test for this phase

What the practice needs to check
Duties start	6 April 2027
Qualifying income	More than £30,000
Tax year HMRC checks	2025–26
Practice workflow	A small practice can keep one named review list and a weekly block for client questions.

Illustrative practice snapshot

The figures below are an example of an anonymised review sheet, not HMRC data or a client prediction. They show how a practice can separate clear and unclear cases.

Example cohort counts for a 1–2 people practice
Cohort	Clients	Next review
£30,000 or below	11	Record the cohort and check whether another income source changes it.
Over £30,000	5	Confirm the 2025–26 test and review exemptions before contact.
Income unclear	1	Request the missing figures and leave the status undecided.

This is a triage aid, not a tax position. Confirm the qualifying-income calculation and check exemptions or deferrals before telling a client they must use MTD.

Sources: Find out if and when you need to use Making Tax Digital for Income Tax

What to put on the review list

Count clients in the relevant qualifying-income band.
Mark each client's records and software position.
Keep one dated list of questions for HMRC or the practice's tax review.

Keep the boundary clear

Aggregate counts are enough for an initial practice view. Do not put client names, addresses, tax returns, or personal financial details into this demo.

Questions practices ask

Does practice size change the HMRC threshold?

No. The HMRC entry test is based on qualifying income and the relevant tax year. Practice size changes the review workflow, not the statutory threshold.

What should a 1–2 people practice review first?

Count clients in the relevant qualifying-income band.

Need this in your practice workflow?

We can adapt the cohort labels, sample mix and client-letter draft for your practice.

Request £250 adaptation