Sole traders and landlords earning more than £30,000 urged to act now
Sole traders and landlords earning over £30,000 urged to get ready for Making Tax Digital.
- Making Tax Digital for Income Tax will extend to sole traders and landlords earning more than £30,000 from 6 April 2027.
- Customers who sign up early have more time to choose compatible software and prepare in their own time.
There are just six months to go until sole traders and landlords with a turnover of more than £30,000 will be required to use Making Tax Digital (MTD) for Income Tax.
HM Revenue and Customs (HMRC) is urging those customers to sign up on GOV.UK and start preparing now. They should check whether they meet the threshold, as turnover includes gross income from self-employment and property before any tax allowances or expenses are deducted.
Signing up early means customers can make sure their MTD details are correct from the start and have time to choose the software that works best for them. Agents can also sign up their clients via GOV.UK.
From 6 April 2027, around 1,077,000 more sole traders and landlords will need to create digital records and use compatible software to send HMRC quarterly updates of their income and expenses and to complete their tax return, in addition to those already using the service.
The quarterly updates are not additional tax returns, but short summaries.
By creating digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time, helping them spend more time focusing on their business and avoiding the last-minute rush every January.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:
Hundreds of thousands of sole traders and landlords are already successfully using Making Tax Digital and now it’s time for the next group to get ready.
Signing up now means you can prepare and familiarise yourself with the process before it becomes mandatory next April.
This builds on the successful launch of MTD for Income Tax for sole traders and landlords earning more than £50,000, who have been using the service since April 2026. Their next milestone is the second quarterly update due on 7 November.
The threshold will decrease further to £20,000 from April 2028, bringing MTD for Income Tax to an even wider group of sole traders and landlords.
Further Information
MTD for Income Tax became mandatory for sole traders and landlords earning more than £50,000 from 6 April 2026.
To sign up, customers must be registered for Self Assessment and have submitted a tax return in the last two years.
Quarterly updates need to be sent through HMRC-recognised software. A list of compatible software is available on GOV.UK.
There are certain exemptions from Making Tax Digital for Income Tax, including for those who are digitally excluded. Visit GOV.UK for details.
Customers can learn more about how Making Tax Digital for Income Tax works by watching HMRC’s customer journey video on YouTube.
The estimate that around 1,077,000 additional sole traders and landlords will be required to join Making Tax Digital for Income Tax from April 2027 is based on HMRC analysis of 2024 to 2025 Self Assessment returns.