Making Tax Digital (MTD) for Income Tax is being rolled out in stages for sole traders and landlords who complete self-assessment returns. Liability to register depends on the level of “qualifying income”, which includes income from self-employment and property.
Since April 2026, those with qualifying income over £50,000 have been required to maintain digital records and submit quarterly updates of trading or property income and expenses
Further registration for MTD will be required from April 2027, when the threshold will reduce to £30,000, and in April 2028 it will further reduce to £20,000. The thresholds are based on income reported for the previous tax year, meaning your obligation to join MTD is triggered by your most recently submitted self-assessment return.
For example, the £30,000 threshold that applies from 6 April 2027 is linked to your qualifying income for the 2025–26 tax year. If your reported income for that year exceeds £30,000, you will be required to start using MTD from April 2027.
HMRC reviews your self-assessment return each year to determine your qualifying income. If you exceed the relevant threshold, they will normally write to confirm when you must start using the system. However, even if you do not receive a letter, it remains your responsibility to check whether you are required to comply and to prepare in time.
If you believe you fall within the rules but have not been notified, you should check your income against the thresholds and ascertain whether you are required to sign up.
