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What's changed · 29 October 2026

Making Tax Digital reaches turnover over £30,000 in April 2027

From 6 April 2027. Applies to the 2027/28 tax year.

In short

From 6 April 2027, sole traders and landlords whose turnover from self-employment and property was over £30,000 on their 2025/26 tax return have to use Making Tax Digital. That return is due by 31 January 2027, and HMRC writes to people it finds over the limit. Unlike the April 2026 group, there's no let-off year for late quarterly updates.

Who it catches

The limit is on turnover before expenses, not profit, and it includes materials you buy and charge on to customers. A tradesperson who thinks of themselves as small can easily be over £30,000. Rent from a property you let out counts too; wages from a job don't.

If you started trading partway through 2025/26, HMRC scales your turnover up to a full year where it has the figures.

The dates that matter

  • 31 January 2027: your 2025/26 return, which decides whether you're in.
  • 6 April 2027: start keeping digital records.
  • 7 August 2027: your first quarterly update, with penalty points if it's late.
  • 31 January 2029: your first tax return through MTD software, for 2027/28.

The limit falls again in April 2028, to £20,000, based on your 2026/27 return.

Our April 2027 plan has every date and what to do before then, and the MTD checker tells you in four questions whether you're in.

The full guide

Sources

  1. Find out if and when you need to use Making Tax Digital for Income Tax, GOV.UK. Checked 29 Oct 2026
  2. Work out your qualifying income for Making Tax Digital for Income Tax, GOV.UK. Checked 29 Oct 2026
  3. Penalties for Making Tax Digital for Income Tax, GOV.UK. Checked 29 Oct 2026

Every change we've covered