April 2027
Making Tax Digital at £30,000: what changes in April 2027.
The second wave of Making Tax Digital for Income Tax starts on 6 April 2027. If your income from property and self-employment adds up to more than £30,000, this one is about you.
Checked against HMRC guidance on
Who has to start in April 2027
You're in the April 2027 group if you're a sole trader, a landlord, or both, and your qualifying income for the 2025–26 tax year was over £30,000. HMRC uses the Self Assessment return you file by 31 January 2027 to decide, then writes to people it thinks are in scope.
| Qualifying income | Measured on | MTD starts |
|---|---|---|
| Over £50,000 | 2024–25 return | 6 April 2026 |
| Over £30,000 | 2025–26 return | 6 April 2027 |
| Over £20,000 | 2026–27 return | 6 April 2028 |
What counts as qualifying income
It's your gross income before expenses, from self-employment and UK and overseas property added together. A landlord with £22,000 of rent and a side business turning over £9,000 has £31,000 of qualifying income, even if the profit is much lower.
- Employment income (PAYE wages) and pensions don't count.
- Rent covered by the rent-a-room scheme doesn't count.
- If you own a property jointly, count your share of the rent, not the whole amount.
What you'll have to do
- Keep your income and expense records digitally, in software that works with HMRC.
- Send a short update to HMRC every quarter: totals for each category, not every receipt.
- Make a final declaration by 31 January after the tax year, which replaces the old Self Assessment return.
Your first tax year under MTD runs 6 April 2027 to 5 April 2028. The quarterly updates are due on these dates:
| Quarter | Covers | Update due |
|---|---|---|
| 1 | 6 April – 5 July 2027 | 7 August 2027 |
| 2 | 6 July – 5 October 2027 | 7 November 2027 |
| 3 | 6 October 2027 – 5 January 2028 | 7 February 2028 |
| 4 | 6 January – 5 April 2028 | 7 May 2028 |
What to do between now and April 2027
- Check your number. Add up your gross rent and self-employed turnover for 2025–26. Our MTD checker does it in a minute.
- File your 2025–26 return on time. It's the return HMRC uses to decide, and it's due by 31 January 2027.
- Pick software before April. You can sign up for MTD voluntarily before your start date, which is a good way to try a quarter while the stakes are low.
- Get your bank statements in order. If your rent and costs go through one account, most of the record keeping is already done.
Penalties
MTD uses penalty points for late submissions: each late quarterly update earns a point, and a fine applies once you reach the threshold. HMRC has been lenient with late quarterly updates while people adjust, but don't plan around that. Check HMRC's current guidance on penalties for your first year on GOV.UK.