HM Revenue and Customs is urging sole traders and landlords with turnover above £30,000 to sign up for Making Tax Digital for Income Tax now. The requirement takes effect on six April 2027. Turnover counts gross income from self-employment and property before any allowances or expenses. HMRC estimates around 1,077,000 additional people will need to join the service.
From six April 2027 affected taxpayers must keep digital records and use HMRC recognised software to send quarterly updates of income and expenses and to complete their tax return. The quarterly updates are not additional tax returns but 'short summaries'. Agents can sign up clients on GOV.UK. To register for MTD customers must be on Self Assessment and have submitted a tax return in the last two years.
MTD for Income Tax is already mandatory for sole traders and landlords with turnover above £50,000 from April 2026, and their next milestone is the second quarterly update due on seven November. The threshold will fall further to £20,000 from April 2028. HMRC publishes a list of compatible software on GOV.UK and sets out exemptions for those who are digitally excluded.
What it means for your business
Check whether your turnover exceeds £30,000, counting gross income from self-employment and property before expenses. If it does, sign up on GOV.UK well before six April 2027, choose HMRC recognised software and start keeping digital records so you can send the quarterly updates. Ensure you are registered for Self Assessment and have submitted a recent tax return, or ask an agent to sign you up.
This brief was written automatically from the source above and summarises it. It is not legal, tax or financial advice.