Making Tax Digital from April 2027: are you over £30,000?
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From 6 April 2027, Making Tax Digital for Income Tax extends to sole traders and landlords with qualifying income over £30,000. From 6 April 2028, the threshold drops to £20,000.
How to tell if you're in
Qualifying income is your total self-employment turnover plus your total rent received, before expenses. For April 2027, HMRC looks at your 2025 to 2026 tax return, which is due by 31 January 2027. Income from a job or from dividends doesn't count.
That matters for company directors too. Your salary and dividends don't bring you into MTD, but if you also have rental properties or a side business in your own name, they might.
Get ready over the next six months
- Check: use our free MTD checker.
- Choose software: Xero*, QuickBooks*, FreeAgent* and Sage* all offer MTD for Income Tax. Start using it before April, so you're comfortable by your first update.
- Separate your money: a business account such as Tide*, ANNA* or Countingup* keeps business transactions apart from personal ones.
- Sign up: HMRC will expect you to sign up for MTD before your first quarterly update. Your accountant can do this for you.
General information only, not professional advice. Correct as at the date shown; rules change, so check GOV.UK or with an accountant before acting.