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. 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
In short: HMRC's Making Tax Digital for Income Tax applies to UK landlords on exactly the same rules as the self-employed. Your gross rental income, before repairs, letting agent fees or mortgage interest, is added to any self-employment income, and over £50,000 in 2024-25 means MTD from 6 April 2026. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
Read MoreQualifying Income for MTD Explained: How It's Calculated
In short: For HMRC's Making Tax Digital for Income Tax, qualifying income is your gross self-employment turnover plus your gross property income, before expenses. PAYE employment income, dividends, savings interest and pension income don't count. Over £50,000 in 2024-25 means MTD from 6 April 2026, over £30,000 in 2025-26 from 6 April 2027, and over £20,000 in 2026-27 from 6 April 2028.
Read MoreSole Trader Plus Landlord? How Combined Income Affects MTD
In short: HMRC adds your self-employment and property income together for the Making Tax Digital test: a £30,000 trade plus £25,000 of rent makes £55,000, over the £50,000 threshold, so MTD applied from 6 April 2026. The same test applies at the £30,000 (6 April 2027) and £20,000 (6 April 2028) thresholds, but once you're in, each income source gets its own quarterly updates.
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