Does it apply to you?
You'll need to use Making Tax Digital for Income Tax from 6 April 2027 if all of these are true:
- You're a sole trader or landlord registered for Self Assessment
- You get income from self-employment, property, or both
- Your qualifying income for 2025 to 2026 was over £30,000
Qualifying income is your gross self-employment and property income added together, before expenses. HMRC reviews your Self Assessment return and writes to you if you're over the threshold, but if you don't receive a letter, it's still your responsibility to check. HMRC's checker tool is linked below.
What changes from April 2027
- Digital records: income and expenses kept in HMRC-recognised software, not a paper book or a spreadsheet you retype.
- Quarterly updates: a summary of income and expenses sent to HMRC four times a year, with deadlines of 7 August, 7 November, 7 February and 7 May.
- A final return: you still finalise the year through your tax return.
A sensible order of work before 6 April 2027
- 01
Confirm your 2025 to 2026 qualifying income once that tax return is done (it's due by 31 January 2027).
- 02
Choose software that suits how you work: Xero, QuickBooks, FreeAgent and Sage all support MTD for Income Tax.
- 03
Open or separate a business bank account if business and personal spending are mixed.
- 04
Get a few months of records into the software before April, so the first quarter isn't also your learning period.
- 05
Decide who sends the quarterly updates: you, your accountant, or a bookkeeper acting as your agent.
Where Larissa helps
Larissa is a Xero-certified bookkeeper. She can set up and maintain your digital records, prepare each quarterly update, and organise the year for your accountant or your own return. The written scope says exactly who submits what, so nothing falls between you and your accountant.
Frequently asked questions
I'm under £30,000. Do I need to do anything?
Not from April 2027, but the threshold drops to £20,000 from April 2028, based on your 2026 to 2027 income. If you're close, it's worth moving to digital records early.
Does this replace my Self Assessment return?
You still submit a Self Assessment return for the year before you start. After that, quarterly updates are sent during the year and the year is finalised through your return.
Can I be exempt?
Some people can, for example if they're digitally excluded. HMRC's exemptions guidance, linked below, explains who qualifies and how to apply.
Does it matter if I'm a landlord with a joint property?
Joint ownership affects how qualifying income is worked out. Check HMRC's qualifying income guidance, linked below, or raise it on the call.
Official information
Check the current HMRC guidance.
Checked on 21 October 2026