MTD for Income Tax from April 2027: The £30,000 Threshold
If your self-employment or rental income was over £30,000 in the 2025–26 tax year, Making Tax Digital for Income Tax becomes mandatory for you from 6 April 2027. This is the second wave of the MTD rollout, following the £50,000 group that joined from April 2026, and it draws in a considerably larger number of sole traders and landlords. Here’s exactly who’s affected, why the current tax year matters more than most people realise, and what’s worth setting up now rather than in March 2027.
Read MoreMTD for Income Tax from April 2028: The £20,000 Threshold
From 6 April 2028, Making Tax Digital for Income Tax extends to sole traders and landlords with qualifying income over £20,000 in the 2026–27 tax year. It’s the third and, so far, final wave of the rollout HMRC has confirmed — and because £20,000 is a relatively low bar for combined self-employment and property income, it brings in a large slice of the UK’s smaller sole traders, part-time landlords, and side hustlers. Here’s the full phase-in timeline, who the £20,000 threshold catches, and what’s actually confirmed about where MTD goes from here.
Read MoreMTD for Landlords: How Making Tax Digital Applies to Rental Income
If you rent out property in the UK, it’s easy to assume Making Tax Digital is a sole trader problem that doesn’t apply to you. It isn’t. MTD for landlords runs on exactly the same rules as MTD for the self-employed — your rental income counts toward the same thresholds, on the same start dates, with the same quarterly updates. This guide covers how property income is assessed, what happens if you also have a job or a business on the side, and what records you’ll actually need to keep once you’re in scope.
Read MoreQualifying Income for MTD Explained: How It's Calculated
“Qualifying income” is the single figure that decides whether — and when — you have to join Making Tax Digital for Income Tax. Get it wrong and you might miss your sign-up window, or assume you’re in scope when you’re comfortably not. It’s a more specific number than most people expect, and it doesn’t work the way your annual tax bill does. Here’s exactly how it’s calculated.
Read MoreSole Trader Plus Landlord? How Combined Income Affects MTD
Plenty of people run a small trade and let out a property on the side, each one comfortably under any MTD threshold on its own — and assume that means they’re fine. Making Tax Digital doesn’t test your income streams separately. HMRC adds your self-employment and property income together, and it’s that combined figure that decides whether, and when, you’re mandated. Here’s exactly how that works, with real numbers.
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