by Asim Abbas
11 November 2026 
Earning over £30,000? Getting ready for MTD in April 2027
Earning over £30,000? Getting ready for MTD in April 2027
If your income from self-employment and property was over £30,000 in 2025/26, Making Tax Digital for Income Tax is coming for you on 6 April 2027.
- MTD applies from 6 April 2027 if 2025/26 qualifying income was over £30,000
- Qualifying income means gross self-employment and property income
- You’ll send four quarterly updates through software
- No first-year penalty easement for April 2027 joiners
That’s less than five months away, and the tax return you’re filing now is what decides it.
Here’s what changes, what you need to do and how to get ready without the stress.
Am I in from April 2027?
Look at your 2025/26 tax return, due by 31 January 2027. Add up your turnover from self-employment and your gross rental income. If the total is over £30,000, you must use MTD for Income Tax from 6 April 2027.
You’re a sole trader with £24,000 of sales and you also earn £9,000 rent from a flat. Your qualifying income is £33,000, so you’re in MTD from April 2027, even though each income on its own is under £30,000.
What changes for you
Your 2027/28 tax return is then submitted through your software by 31 January 2029. Your payments on account and payment dates stay the same.
Income tax calculator
Check your tax on combined trading and rental income.
Choosing software
- It must be on HMRC’s list of compatible software
- Bank feeds save time: transactions flow in automatically
- If you love spreadsheets, you’ll need bridging software to send updates
- Some providers offer free versions for simple businesses
Penalties to know about
Each late quarterly update earns a penalty point. Reach four points and you pay £200, with another £200 for each later late update. The first-year easement only applied to April 2026 joiners, so April 2027 joiners get points from day one.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Five things to do before April 2027
- File your 2025/26 return early so you know your figures
- Open a separate bank account for your business or lettings if you don’t have one
- Choose software and connect your bank
- Sign up for MTD for Income Tax on GOV.UK or ask your agent to
- Run a practice quarter from January to March 2027
Our Making Tax Digital service does all of this for you, and our bookkeeping service can keep your records up to date every month.
What should I do next?
Self-employment turnover plus gross rent.
You, a bookkeeper or us.
Start before April to iron out problems.
MTD Essentials from £25 a month, or MTD Complete with bookkeeping from £75.
Frequently Asked Questions
Will HMRC tell me I’m in MTD?
HMRC is writing to people it expects to be in scope, but it’s your responsibility to check. Don’t wait for a letter.
What if my income drops below £30,000 later?
If your qualifying income falls below the threshold for three years in a row, you can stop using MTD.
Can I join early?
Yes. You can sign up voluntarily, which gives you time to get used to the software before it becomes compulsory.
Do I still need an accountant?
You don’t have to, but many people find quarterly updates easier with help. We can send them for you as your HMRC agent.
Does MTD change how much tax I pay?
No. It changes how you report, not what you owe. Tax is still worked out on your annual profit.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
