📅 Guide · Updated 26 October 2026 · 1 min read

Making Tax Digital from April 2027: are you in at £30,000?

The second wave of Making Tax Digital starts on 6 April 2027 and brings in sole traders and landlords with qualifying income over £30,000. Your 2025/26 tax return decides it.

The test, step by step

  1. Take your 2025/26 tax return (the one due by 31 January 2027).
  2. Add your self-employment turnover (before expenses).
  3. Add your rent received from UK and overseas property (your share if jointly owned), before expenses.
  4. Over £30,000? MTD applies from 6 April 2027. HMRC will usually write to you, but the rule applies whether or not you get a letter.
Example: a self-employed cleaner taking £22,000 who also lets a flat for £10,800 a year has qualifying income of £32,800 – so MTD applies, even though neither income is over £30,000 on its own.

Your timeline

WhenWhat
Now – January 2027File your 2025/26 return. It fixes whether you’re in.
February – March 2027Choose software or an accountant; start digital records.
6 April 2027MTD starts for you.
7 August 2027Your first quarterly update is due.
31 January 2029Final declaration for 2027/28.

What if your income drops?

If your qualifying income falls below the threshold for three tax years in a row, you can leave MTD. One quiet year isn’t enough on its own.

Don’t wait for January

January is the busiest month of the year for accountants. Practices that take on MTD clients have limited room, so getting quotes in the autumn is the easiest way to get a good fixed fee.

Sources

General information about HMRC’s Making Tax Digital rules as of 26 October 2026, not tax advice. MTD Match is not affiliated with HMRC.

Written by the MTD Match team

We turn HMRC’s Making Tax Digital guidance into plain English for each trade, cite the GOV.UK pages we rely on and update every guide when the rules change.

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