Guides › MTD for Income Tax from April 2027: Who Needs to Join?
MTD for Income Tax from April 2027: Who Needs to Join?
General information, not tax advice. This page summarises HMRC and GOV.UK guidance as read on 17 October 2026. Rules, thresholds and dates can change; check GOV.UK and speak to a qualified adviser or HMRC about your own circumstances. Figures in examples are made up.
Short answer: If you are a sole trader or landlord registered for Self Assessment and your qualifying income for 2025 to 2026 is more than £30,000, GOV.UK says you will need to use Making Tax Digital (MTD) for Income Tax from 6 April 2027. Qualifying income means gross income from self-employment and property, before expenses.
The timetable
| Qualifying income in tax year | Threshold | You need to use MTD for Income Tax from |
|---|---|---|
| 2024 to 2025 | more than £50,000 | 6 April 2026 (already started) |
| 2025 to 2026 | more than £30,000 | 6 April 2027 |
| 2026 to 2027 | more than £20,000 | 6 April 2028 |
Source: GOV.UK, as read 17 October 2026.
The £20,000 threshold is also the level below which GOV.UK says you are automatically exempt (see MTD exemptions).
Who is covered
You need to use MTD for Income Tax if all of these apply:
- you are a sole trader or landlord registered for Self Assessment;
- you have income from self-employment, property, or both;
- your qualifying income is above the relevant threshold.
What qualifying income is
Total income from self-employment and property before expenses (turnover), taken from the Self Assessment return you submitted for the previous tax year. Employment income (PAYE), dividends and pensions do not count. See what counts as qualifying income with examples.
How HMRC decides, and what if it doesn't write
HMRC reviews your Self Assessment return and checks your qualifying income each year. If you are over the threshold, it writes to confirm you need to start by the following 6 April. GOV.UK is clear that if you do not receive a letter, it is still your responsibility to check whether and when you need to use MTD and to sign up.
HMRC has an official tool that asks about the 2024 to 2025, 2025 to 2026 and 2026 to 2027 tax years. Use it to confirm your own position: Find out if and when you need to use MTD for Income Tax.
What to do now
- Work out your qualifying income for 2025 to 2026 (see our guide).
- File your 2025 to 2026 Self Assessment return. The online deadline is 11:59pm on 31 January 2027 (GOV.UK deadlines page). You still must submit a return for the year before you start MTD.
- Check exemptions that may apply to you.
- Choose compatible software before you sign up (see choosing software).
- Sign up, or ask an agent to. To sign up you must be registered for Self Assessment and have submitted a return in the last two years.
- Use our seven-step checklist.
FAQ
I earn £28,000 from self-employment. Do I need MTD in April 2027? On the figures in GOV.UK, £30,000 is the 2025 to 2026 threshold, so £28,000 would be below it. The next threshold (£20,000, from April 2028 based on 2026 to 2027) could apply. Check the official tool.
Does my PAYE salary count? No. Employment income does not count towards qualifying income.
Can I join early? GOV.UK says that if you are not required to use MTD until 6 April 2027, you can choose to sign up voluntarily.
Is the threshold on profit or turnover? Turnover (before expenses).
What if my income changes? GOV.UK says that once you are in MTD, you can choose to opt out if qualifying income stays below the threshold for three tax years in a row.
What we could not verify
- Whether the thresholds or dates will be changed by Parliament after 17 October 2026.
- Individual circumstances (non-residents, trusts, partnerships, ceased income) beyond what is summarised here.
Sources (GOV.UK / HMRC)
- GOV.UK, Find out if and when you need to use Making Tax Digital for Income Tax — https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax (page last updated 26 March 2026; read 17 October 2026)
- GOV.UK, Work out your qualifying income for Making Tax Digital for Income Tax — https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax (last updated 11 September 2026; read 17 October 2026)
- GOV.UK, Sign up for Making Tax Digital for Income Tax — https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax (last updated 13 October 2026; read 17 October 2026)
- GOV.UK, Self Assessment tax returns: Deadlines — https://www.gov.uk/self-assessment-tax-returns/deadlines (read 17 October 2026)
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Not tax advice. Examples use made-up figures. Nothing here has been reviewed by a tax professional. See the disclosure.