Quick answer
Not yet. If your 2024/25 tax return claimed qualifying care relief, you’re automatically exempt from MTD for Income Tax until April 2027. Qualifying care receipts also don’t count towards the MTD threshold, so many carers won’t be affected even after that.
Key facts
Claimed qualifying care relief on your 2024/25 return: exempt until April 2027
No need to apply; the exemption is automatic
Qualifying care receipts don’t count towards qualifying income
Other self-employment or rental income still does
Who this covers
Qualifying care relief applies to foster carers, shared lives (adult placement) carers, kinship carers and staying put carers.
The exemption
HMRC lists claiming qualifying care relief on your 2024/25 return as an automatic exemption until April 2027. HMRC also says that if your qualifying income is over £30,000 for 2025/26, this exemption ends before the 2027/28 tax year.
Care income and the threshold
HMRC’s qualifying income guidance excludes qualifying care relief, so your care receipts aren’t added up for the threshold. If you also rent out property or run another business, that income is still counted. See working out qualifying income.
How the relief works
For 2025/26, the qualifying amount is £19,690 per household for a full year, plus £415 a week for each child under 11 and £495 a week for each child aged 11 or over or adult. If your care receipts are below that, HMRC treats you as making no profit. If they’re above it, you can pay tax on the difference or on your actual profit.
Other temporary exemptions
Farmers and creators who claim averaging relief have a similar exemption. See MTD exemptions.