Guides · Making Tax Digital · 6 min
Making Tax Digital for Income Tax: who is in from April 2027
Sole traders and landlords with income over £30,000 join Making Tax Digital from 6 April 2027. What counts towards the limit, what changes, and what you need in place first.
Published
Making Tax Digital for Income Tax started in April 2026 for sole traders and landlords with qualifying income over £50,000. From 6 April 2027 the threshold falls to £30,000, which brings in a large share of the self-employed people and landlords we work with.
What counts towards £30,000
It is your gross income from self-employment and property added together, before costs. A landlord with £18,000 of rent and a sole trade turning over £14,000 is over the limit, even if both make a small profit. Employment income, pensions and dividends do not count.
HMRC looks at the tax return for the year two years earlier, so the 2025/26 return decides whether you are in from April 2027.
What changes
- You keep your records in software that works with Making Tax Digital. A spreadsheet can still be used with bridging software.
- You send a short update to HMRC every quarter: income and costs, not a full return.
- After the year ends you submit a final declaration, which replaces the old self-assessment return.
The quarterly updates are due on 7 August, 7 November, 7 February and 7 May.
What to do now
Check whether your 2025/26 income is over £30,000. If it is, choose software before April and start keeping digital records from 6 April 2027. Moving mid-year is much harder than starting clean.
Our quarterly Making Tax Digital service is £15 a month on top of any plan, and we set up the software for you. See the tax deadline calendar for each date in the year.