MTD for Income Tax: are you in the April 2027 group?

Making Tax Digital for Income Tax started in April 2026 for sole traders and landlords with qualifying income over £50,000. The next group joins on 6 April 2027: anyone whose qualifying income is over £30,000. From April 2028 the threshold drops again, to £20,000.

What counts as qualifying income?

It's your combined gross income (turnover, not profit) from self-employment and property. A landlord with £18,000 of rent and a side business turning over £15,000 is over the line. HMRC will use your 2025/26 tax return, due by 31 January 2027, to decide.

What changes for you

• Keep digital records in HMRC-recognised software.
• Send a quarterly update every three months (due 7 August, 7 November, 7 February and 7 May).
• Submit a final declaration by 31 January after the tax year ends.

Penalties are points-based. Each missed deadline earns a point. Reach four points and you get a £200 fine, then another £200 for each later miss. The first-year easement for late quarterly updates covered the 2026/27 tax year only, so the April 2027 group won't get it.

Your six-month plan

1. Now: file your 2025/26 return early so you know where you stand.
2. By January: choose software and move your bookkeeping into it.
3. By March: run a practice quarter so April isn't your first go.
4. From April 2027: let us file your quarterly updates for you.

This article is general guidance based on the position at the date shown and is not advice for your circumstances. Speak to us before acting.