Quick answer
If all your self-employment and property income stopped before 6 April 2026, you don’t need MTD for Income Tax. If you stop while you’re in MTD, you still finish that year and submit the final declaration. If you stop one business but have others, its income still counts towards your qualifying income for that year.
Stopped before MTD started
If all your self-employment or property income stopped before 6 April 2026, HMRC says you won’t need to use MTD for Income Tax.
Stopping while you’re in MTD
Tell HMRC the business has stopped.
Send quarterly updates up to the date it stopped.
Include the final figures in your final declaration for that year.
Stopping one of several
If one income source stops but others continue, the stopped income still counts towards your qualifying income for that year.
Leaving MTD
If your qualifying income stays below the threshold for three tax years in a row, you can choose to opt out.