Making Tax Digital from 6 April 2027: are you in the £30,000 group?

By the Quidtrail team · Facts last checked 18 October 2026

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From 6 April 2027, Making Tax Digital (MTD) for Income Tax applies to sole traders and landlords whose qualifying income was over £30,000 in the 2025 to 2026 tax year (GOV.UK). HMRC estimates that around 1,077,000 more people will need to use it (GOV.UK news, 5 Oct 2026).

Key facts

• Starts: 6 April 2027
• Test: qualifying income over £30,000 on your 2025 to 2026 return
• HMRC's estimate: around 1,077,000 more sole traders and landlords
• Next step down: over £20,000 in 2026 to 2027 means MTD from 6 April 2028

Check if you're in the £30,000 group

Who has to use MTD from 6 April 2027

HMRC says you need to use MTD for Income Tax if all of these apply (GOV.UK):

• you're a sole trader or landlord registered for Self Assessment;
• you get income from self-employment or property, or both;
• your qualifying income is more than the relevant threshold for the tax year.

Source: GOV.UK, checked 18 October 2026.

HMRC's estimate of around 1,077,000 more people from April 2027 is based on its analysis of 2024 to 2025 Self Assessment returns (GOV.UK news). Partnerships will also need MTD in future, but HMRC says it will set out that timeline "at a later date" (GOV.UK).

GOV.UK's wording is "more than" or "over" £30,000.

Turnover or profit? What counts as qualifying income

Turnover. Qualifying income is your total income from self-employment and property before expenses, based on the tax return you sent for the previous tax year (GOV.UK). HMRC's news release puts it as gross income "before any tax allowances or expenses are deducted" (GOV.UK news).

HMRC's own example adds £25,000 of rental income and £27,000 of self-employment income to give qualifying income of £52,000 (GOV.UK). At the £30,000 level it works the same way:

What doesn't count. HMRC lists these as other sources of income that don't count towards qualifying income (GOV.UK):

• employment (PAYE);
• your share of profit from a partnership as an individual partner;
• dividends (including those from your own company);
• a State Pension;
• private pensions.

HMRC's page also covers other cases, such as transition profits from basis period reform, qualifying care relief, one-off transactions in UK land, and income from UK REITs or PAIFs.

Joint property: your share of the income counts (GOV.UK). See MTD for jointly owned property.

Stopped income: income from a source that has stopped can still count if you have another continuing self-employment or property source (GOV.UK).

More detail: MTD qualifying income · MTD and foreign property.

Check if you're in the £30,000 group

Will HMRC write to you?

HMRC says it reviews your Self Assessment return and checks your qualifying income each tax year. If it's above the threshold, HMRC will write to confirm that you need to start using MTD by the start of the following tax year. It also says: "If you did not receive a letter, it is still your responsibility to check if and when you need to use Making Tax Digital for Income Tax" (GOV.UK).

HMRC hasn't published when letters for the £30,000 group will go out. It also hasn't said whether it will sign this group up itself. HMRC says that from September 2026 it will sign up people who needed MTD from April 2026 and hadn't signed up (GOV.UK). See HMRC MTD letters.

HMRC's software developer newsletter says a £30,000 to £50,000 awareness campaign runs from mid-October to late November 2026 (GOV.UK).

What to do before 6 April 2027

These are the steps GOV.UK sets out.

1. File your 2025 to 2026 return by 31 January 2027. "You still need to submit a Self Assessment tax return for the tax year before you start using Making Tax Digital for Income Tax" (GOV.UK). That return is the one HMRC uses for the £30,000 test.
2. Work out your qualifying income. Use our checker or HMRC's tool on the find-out page.
3. Choose compatible software. HMRC doesn't provide it (GOV.UK). Use HMRC's find software tool and its guide to choosing software. HMRC says free products are available for simple tax affairs but may have limits. See our A to Z of MTD software, free MTD software, MTD software for landlords and bridging software pages.
4. Sign up. To sign up you must be registered for Self Assessment and have submitted a tax return in the last 2 years. GOV.UK says you can sign up voluntarily before you need to. For example, if you need MTD from 6 April 2027, "you can sign up and volunteer now" (GOV.UK). Agents can sign clients up (GOV.UK news). See how to sign up for MTD.
5. Keep digital records from the start of your first MTD year. If your accounting period ends on 5 April, that's from 6 April. If it ends on 31 March, HMRC says you'll create digital records from 1 April and should use calendar update periods, which you must select in your software before your first quarterly update (GOV.UK).

Your first year: deadlines

Quarterly update deadlines are 7 August, 7 November, 7 February and 7 May (GOV.UK). For 2027 to 2028 that means:

The return deadline is "31 January after the end of the tax year" (GOV.UK). See MTD quarterly deadlines, the quarterly checklist and the MTD year-end tax return.

Penalties: is there a soft landing for the £30,000 group?

GOV.UK doesn't describe a penalty-free year for 2027 to 2028.

• Late submission is points-based. You get a point for each missed quarterly update deadline "for tax years after 2026 to 2027" and for a missed tax return deadline. At 4 points you get a £200 penalty, and another £200 each time you miss a further deadline (GOV.UK). The "no penalties for missing a quarterly update deadline" rule is written for the 2026 to 2027 tax year only.
• Late payment: in your first year of the new penalties, you have 30 days from the due date to pay in full or contact HMRC to set up a payment plan before penalties start. After that it's 15 days. For 2027 to 2028, the penalty is 4% of the tax owed at day 15 and 4% at day 30, plus 10% a year on the outstanding amount from day 31 (GOV.UK).
• Everyone in Self Assessment: HMRC says "from April 2027, the new penalties will apply to everyone who submits a personal Self Assessment tax return", (GOV.UK). The same page says that if you become exempt from MTD in 2027 to 2028, your penalty point threshold "will decrease from 4 points to 2 points". No commencement regulations for people outside MTD had been made when we checked on 18 October 2026.

The Budget on 28 October 2026 could change any of this. We'll update this page then. See MTD penalties explained.

Just under £30,000? April 2028 and £20,000

If your qualifying income for 2026 to 2027 is over £20,000, you'll need to use MTD from 6 April 2028 (GOV.UK). HMRC's exemptions guidance says qualifying income of £20,000 or less is an automatic exemption (GOV.UK).

Check when MTD applies to you

Can you leave MTD later?

Once you're using MTD, you can opt out if your qualifying income has been below the threshold for 3 consecutive years. HMRC uses the income in your fourth quarterly update for the third year to check. You can also opt out if you amended the previous year's return and that took your qualifying income below the threshold (GOV.UK).

Some people are exempt, including people who are digitally excluded (GOV.UK). Some temporary exemptions for 2026 to 2027 end in April 2027: HMRC says people covered by them will need MTD from 2027 to 2028 if their 2025 to 2026 qualifying income is over £30,000. See MTD exemptions.

Will April 2027 be delayed?

As of 18 October 2026, GOV.UK still says 6 April 2027 for the £30,000 group (GOV.UK; GOV.UK news, 5 Oct 2026). The Budget is on Wednesday 28 October 2026 (HM Treasury). We'll check the Budget documents on the day and update this page.

What the first year showed

On 12 August 2026, HMRC said more than 570,000 customers had signed up and more than 436,000 sole traders and landlords had sent their first quarterly update (GOV.UK news).

Other changes for landlords in April 2027

Separately, property income gets its own Income Tax rates from April 2027. That change doesn't affect MTD. See landlord tax changes from April 2027, MTD for landlords and MTD for sole traders.

Frequently asked questions

Is the MTD threshold based on turnover or profit?

Turnover. Qualifying income is your self-employment and property income before expenses (GOV.UK).

I earn under £30,000. Do I need MTD in April 2027?

Not from April 2027, if your 2025 to 2026 qualifying income isn't over £30,000. If your 2026 to 2027 qualifying income is over £20,000, you'll need it from 6 April 2028 (GOV.UK).

Do my wages count towards the £30,000?

No. HMRC says employment (PAYE) income doesn't count towards qualifying income. Nor do pensions or dividends (GOV.UK).

Will HMRC write to me?

HMRC says it writes after reviewing your return if your income is over the threshold, but it's still your responsibility to check if you don't get a letter. HMRC hasn't published dates for the £30,000 group's letters (GOV.UK).

Is there a penalty-free year for the £30,000 group?

GOV.UK doesn't describe one. The no-points rule for late quarterly updates is written for 2026 to 2027 only (GOV.UK). We'll update this after the Budget on 28 October 2026.

Do I still file a 2025 to 2026 tax return?

Yes, by 31 January 2027, in the usual way. GOV.UK says you still need to submit a return for the tax year before you start using MTD (GOV.UK).

Has Making Tax Digital been delayed?

Not as of 18 October 2026. GOV.UK still says 6 April 2027 for the £30,000 group (GOV.UK).

Do joint landlords count the full rent or their share?

Their share. In HMRC's example, a property with £50,000 of income split equally gives each owner qualifying income of £25,000 (GOV.UK).

Sources {#sources}

All checked 18 October 2026.

• GOV.UK: Find out if and when you need to use Making Tax Digital for Income Tax (last updated 26 Mar 2026)
• GOV.UK news: Sole traders and landlords earning more than £30,000 urged to act now (5 Oct 2026)
• GOV.UK: Work out your qualifying income for MTD for Income Tax (last updated 11 Sep 2026)
• GOV.UK: Edition 7: MTD for Income Tax software developer newsletter (30 Sep 2026)
• GOV.UK: Sign up for Making Tax Digital for Income Tax (last updated 13 Oct 2026)
• GOV.UK: Choose the right software for MTD for Income Tax (last updated 13 Jul 2026)
• HMRC: Find software that works with MTD for Income Tax
• GOV.UK: Use MTD for Income Tax: create digital records
• GOV.UK: Penalties for Making Tax Digital for Income Tax (last updated 30 Mar 2026)
• GOV.UK: Use MTD for Income Tax: if your circumstances change
• GOV.UK: Find out if you can get an exemption from MTD for Income Tax (last updated 28 May 2026)
• HM Treasury: Budget date announcement (31 Jul 2026)
• GOV.UK news: 436,000 sole traders and landlords make their tax digital (12 Aug 2026)

Related: MTD for Income Tax guide

Last checked against GOV.UK on 18 October 2026. Not tax advice.