MTD Knowledge Base

MTD from April 2027: does the £30,000 threshold apply to you?

The short version

If you are self-employed or a landlord and your qualifying income for the 2025/26 tax year is over £30,000, you will normally need to use Making Tax Digital for Income Tax from 6 April 2027.

That means keeping digital records and sending quarterly updates. It does not mean four tax returns or paying Income Tax four times a year.

Who exactly does this affect?

The £30,000 threshold is based on qualifying income, not profit. Qualifying income is your gross income from self-employment and property before expenses, CIS deductions or anything else is taken off.

• Electrician with £35,000 turnover and £18,000 left after expenses: in. Turnover counts, not profit.
• Landlord with £8,000 rent plus £24,000 from self-employment: in. The two qualifying income sources are added together.
• PAYE employment plus £15,000 freelance income: out for now, assuming there is no other qualifying income. PAYE salary does not count and £15,000 is below both the £30,000 threshold for 2027 and the planned £20,000 threshold for 2028.

Check the details in our qualifying income guide or use the official GOV.UK guidance.

Why HMRC is talking about April 2027 now

The first MTD group entered in April 2026 at the £50,000 threshold. The April 2027 group is broader: smaller sole traders, landlords and people combining self-employment or property income with a PAYE job.

HMRC has announced communications for this group, including a “6 months to go” campaign in October 2026. April 2027 is approaching, so this is a useful time to understand the rules without a deadline breathing down your neck.

Starting early helps, but do not confuse preparation with a legal backlog

If this group applies to you, your MTD digital-record obligation starts on 6 April 2027. You are not required to recreate the previous six or twelve months as MTD records.

Starting now is still useful practice. You can test a routine, organise receipts and income proof, and find out what your accountant needs before the first live quarter begins.

What you need to do and when

Now: Check the qualifying income shown by your 2025/26 tax return. If it is over £30,000, read the HMRC guidance and check whether an exemption applies.

Before 6 April 2027: Follow HMRC's instructions, choose compatible software and authorise the software you will use for the formal MTD process. The HMRC software finder lists recognised products.

From 6 April 2027: Keep digital records of business and property income and expenses. Send quarterly updates for each relevant income source. The first standard deadline is 7 August 2027.

After the tax year: Submit the 2027/28 tax return through compatible software by 31 January 2029. You can do this yourself or ask an accountant to do it.

For more detail, see our guides to digital records, quarterly updates and Government Gateway and MTD.

Where TidGo fits

TidGo collects receipts, income proof and CIS deduction statements as they arrive, through WhatsApp, email intake or the app. It helps turn everyday paperwork into cleaner records for you and your accountant.

TidGo does not currently submit quarterly updates or tax returns to HMRC. Formal submissions must be handled by authorised MTD-compatible software or your accountant. TidGo focuses on making the records behind that process easier to collect, review and export.

Start organising your digital records now, before the deadline pressure arrives.