2026-10-08 · MTD News
Sole traders and landlords over £30,000 urged to prepare for MTD
From 6 April 2027, Making Tax Digital (MTD) for Income Tax will apply to sole traders and landlords with a turnover of more than £30,000. HMRC estimates that around 1,077,000 more people will need to join. HMRC is asking those affected to sign up on GOV.UK now and start preparing.
Turnover means gross income from self-employment and property, before any tax allowances or expenses are deducted. Anyone unsure whether they meet the threshold should check this figure first. Agents can also sign up their clients through GOV.UK.
Under MTD, people will keep digital records and use compatible software to send HMRC quarterly updates of their income and expenses, as well as to complete their tax return. HMRC says the quarterly updates are short summaries, not extra tax returns.
- Check whether your turnover is over £30,000.
- To sign up, you must be registered for Self Assessment and have filed a tax return in the last two years.
- Choose HMRC-recognised software. A list is on GOV.UK.
- Some people are exempt, including those who are digitally excluded.
MTD for Income Tax has been mandatory since 6 April 2026 for sole traders and landlords earning more than £50,000. The threshold will fall to £20,000 from April 2028.
Source: gov.uk announcement.