The MTD Qualifying Income Report shows you which of your clients will be required to file under Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), the tax year from which that requirement applies, and any applicable exemption reason. You can run it directly from the Reports menu in BrightTax and click through to a client's tax return from the results.

This report replaces the equivalent report from BTC desktop software and uses the same income data already held in your clients' Individual Tax Returns (ITRs).

• Your clients must have Individual Tax Returns (ITRs) created in BrightTax for the tax year you want to assess.
• Income data must be entered in those ITRs — the report uses figures already saved in the return.
• You need standard user access or above. No additional permissions are required.

1. From the main navigation, select Reports.
2. Select MTD Qualifying Income from the list of available reports.
3. Apply filters to narrow your results:
   • Tax Year — select the tax year you want to assess.
   • My Clients Only — tick this to show only clients assigned to your user account.
   • Active / Inactive Clients — choose whether to include inactive client records.
   • Include Completed — choose whether to include returns already marked as complete.
4. Click Run Report (or Apply Filters if you are already viewing results).
5. Review the results table. For each client, the report shows:
   • Self-employment income
   • UK property income
   • Foreign property income
   • Total MTD qualifying income
   • The tax year from which MTD filing becomes mandatory for that client
   • Any applicable exemption reason
6. To open a client's tax return directly from the report, click the client name or the row link.

MTD for ITSA applies when a client's total qualifying income from self-employment and property exceeds the relevant threshold. The current mandatory thresholds are:

Qualifying income is the combined total of self-employment income, UK property income, and foreign property income. Other income types (for example, employment income or dividends) do not count towards the MTD qualifying income threshold.

Where a client qualifies for an exemption from MTD, the reason will appear in the Exemption Reason column. Common exemption reasons include:

• Digital exclusion — the client is unable to engage with digital tools due to age, disability, or location.
• Below threshold — the client's qualifying income is below the relevant threshold for the selected tax year.
• HMRC-approved exemption — an exemption has been formally granted by HMRC for other reasons.

My client is not appearing in the report

• Check that the client has an ITR created for the selected tax year.
• Check that your Active / Inactive filter includes the client's current status.
• If My Clients Only is ticked, confirm the client is assigned to your user account.

The income figures look incorrect

• The report pulls directly from the data in the client's ITR. Check that income has been entered correctly in the relevant subschedules — SA103 for self-employment, SA105 for UK property, SA106 for foreign income.
• Confirm you have selected the correct tax year in the filter.

The report is showing no results at all

• Confirm that at least one client has an ITR with income data entered for the selected tax year.
• Try clearing all filters and running the report with default settings.

Q: Does this report replace the MTD report in BTC desktop?

A: Yes. The MTD Qualifying Income Report in BrightTax replaces the equivalent report from BTC desktop and uses the same income data already held in your clients' ITRs.

Q: Can I export the report results?

A: Export options are available via the print or export controls at the top of the results screen. If the format you need is not available, please contact our support team.

Q: My client's income is above the threshold but they are showing an exemption — is this correct?

A: Yes, it is possible for a client above the threshold to qualify for an exemption. Review the exemption reason shown. If you believe it is incorrect, check the client's ITR for any entries that may be affecting the income calculation.

Q: How often is the report data updated?

A: The report reflects the current data held in your clients' ITRs in BrightTax. It updates in real time as ITR data is saved — there is no separate sync or refresh required.

Q: Can I filter the report by office or team?

A: Currently, the available filters are tax year, my clients only, active/inactive status, and include completed. Filtering by office or team is not available at this time.