Making Tax Digital: does it affect you from April 2027?
From 6 April 2027, sole traders and landlords with more than £30,000 of qualifying income must keep digital records and send HMRC quarterly updates. Here's what that means in practice.
Who it applies to
Making Tax Digital (MTD) for Income Tax is being phased in based on your qualifying income, which is your self-employed turnover plus your gross property income, before expenses.
| Qualifying income over £50,000 | April 2026 |
| Qualifying income over £30,000 | April 2027 |
| Qualifying income over £20,000 | April 2028 |
For the April 2027 start, HMRC looks at the income on your 2025/26 tax return, the one due by 31 January 2027.
What changes
- Digital records: you keep your income and expense records in MTD-compatible software (which can include spreadsheets linked through bridging software).
- Quarterly updates: every three months you send HMRC a summary of your income and expenses. These aren't tax returns and there's no payment with them.
- Final declaration: after the year ends, you confirm your figures and add any other income, by 31 January as now.
What doesn't change
When you pay, how much you pay and the payments on account system stay the same. MTD changes how you report, not your tax bill.
How to get ready
- Check your 2025/26 turnover plus property income against £30,000
- Pick software from HMRC's list of compatible products. Some free options exist.
- Start keeping records monthly now, so quarterly updates are routine
- Look out for a letter from HMRC, which is sending reminders to people likely to be affected
Not sure if you're over the limit? Our calculator flags MTD based on your income.
Check my incomeGeneral guidance. See GOV.UK's Making Tax Digital for Income Tax pages for exemptions and the latest list of software.