Making Tax Digital for Income Tax: Preparing for the April 2027 threshold

A practical guide for sole traders and landlords approaching £30,000 in income.

Making Tax Digital for Income Tax is a legal requirement to keep digital business records and send HMRC a short online update every three months, rather than relying on one Self Assessment return a year. It has applied since 6 April 2026 to sole traders and landlords with qualifying income over £50,000, and from 6 April 2027 it extends to anyone with combined self-employment and property income over £30,000.