Do I Need MTD If I Earn Under £30,000?

Written by Tom Ellis · Senior Trades Editor

Last updated: 7 November 2026

Quick Answer

My turnover is under £30,000. Am I safe from Making Tax Digital?

Not for good. The £20,000 threshold from April 2028is already law (SI 2026/336), and it's decided on your 2026-27turnover, the tax year you're working in right now. If your self-employment and property turnover was £30,000 or less in 2025-26, you're not in MTD from April 2027. If it's over £20,000 in 2026-27, you're in from April 2028. Under £20,000, you're not required to join yet, but you can volunteer. In every case it's turnover before expenses, not profit.

Check both years: the free Making Tax Digital checker tells you whether you join in 2027, 2028 or not yet.

April 2028: the £20,000 threshold is already law

Making Tax Digital for Income Tax arrives in three waves. Over £50,000 in 2024-25 joined in April 2026. Over £30,000 in 2025-26 joins in April 2027. Over £20,000 in 2026-27 joins in April 2028 (GOV.UK).

The third wave isn't a proposal. It's written into the Income Tax (Digital Obligations) Regulations 2026, made in March 2026 (SI 2026/336). The 2026-27 tax year runs from 6 April 2026 to 5 April 2027, so the year that decides is already well under way. For how the April 2027 wave works, see the MTD £30,000 threshold guide.

Turnover, not profit

HMRC's test uses qualifying income: your self-employment turnover plus property income, taken before expenses (GOV.UK: qualifying income). For tradespeople with big material bills, that's the figure that surprises people. Paying out £10,000 on materials doesn't pull a £28,000 turnover down to £18,000.

Worked example: under £30k, but in from 2028

Lee is a painter and decorator working for himself.

Turnover, 2025-26: £26,000 (profit £17,000 after paint, sundries and van costs)
April 2027 test: £26,000 is under £30,000, so he is not in from 6 April 2027.
Turnover, 2026-27: £27,500
April 2028 test: £27,500 is over £20,000, so he is in from 6 April 2028, with his first quarterly update due 7 August 2028.

Compare Jo, a part-time tiler with £16,000 of turnover in 2026-27. She isn't required to join in April 2028, and no date has been set for anyone under £20,000. She'll keep filing her Self Assessment return as now unless that changes.

Under £20,000: not required, but you can volunteer

You can sign up voluntarily for the current or the next tax year, as long as you're registered for Self Assessment and have filed a return in the last two years (GOV.UK: sign up). Some people do it to get used to quarterly updates before they have to. Exemptions apply at any level: automatically if you have no National Insurance number, or on application if age, health or disability, a religious objection, or where you live (no internet access) means you're digitally excluded. Cost, or not knowing software, isn't accepted on its own.

What to do next

Find your 2025-26 turnover from self-employment and property. Over £30,000 means April 2027.
Estimate 2026-27 from your invoices so far. Over £20,000 means April 2028. Plan for it now, not in spring 2028.
Check the MTD deadlines for your wave.
Start digital records anyway: it makes your tax return easier whichever wave you're in. In Sleepless Tradesman the MTD records (expenses, cash and CIS income, mileage, tax set-aside and quarterly figures) are free on every plan. Your figures are ready to export for you or your accountant to submit. Sending them to HMRC directly from the app is coming once HMRC approves it.

Frequently asked questions

I earn under £30,000. Do I need MTD?

Not from April 2027, if your self-employment and property turnover in 2025-26 was £30,000 or less. But if that turnover is over £20,000 in 2026-27, you join from April 2028.

Is the £20,000 threshold definitely happening?

Yes. It is already law, in the Income Tax (Digital Obligations) Regulations 2026 (SI 2026/336), made in March 2026. It is not just a proposal.

Which tax year decides whether I join in April 2028?

2026-27, which runs from 6 April 2026 to 5 April 2027. It's the year you're working in now, and its tax return is due by 31 January 2028.

Is the threshold based on my profit?

No. It's turnover before expenses from self-employment and property. A tradesperson who turns over £24,000 and makes £14,000 profit has £24,000 of qualifying income.

I'm under £20,000. Can I still use MTD?

Yes. You can volunteer for the current or the next tax year, as long as you're registered for Self Assessment and have filed a return in the last two years. You don't have to.

Get a head start on 2028.

Keep digital records from today so the switch is a non-event when your wave arrives. The MTD records are free on every plan.

Try Sleepless Tradesman free