MTD for £30,000 Earners: What Changes in April 2027 for the Self-Employed
Written by Tom Ellis · Senior Trades Editor
Last updated: July 2026
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From April 2027, Making Tax Digital for Income Tax applies to self-employed people and landlords whose gross income (turnover before expenses) from self-employment and property is over £30,000, based on their 2025–26 tax return. If that's you, you'll keep digital records and send HMRC quarterly updates instead of one annual Self Assessment. The way to make it painless is software that prepares those figures automatically.
The rollout so far
Making Tax Digital for Income Tax is arriving in waves by income:
- April 2026: gross income over £50,000 (already live)
- April 2027: gross income over £30,000 — the wave that catches most full-time tradespeople
- April 2028: gross income over £20,000
How to check if it applies to you
The test is gross income — your total turnover from self-employment plus any property income, before expenses — as reported on your 2025–26 tax return. It is not your profit. A tradesperson turning over £40,000 but netting £22,000 after materials and van costs is still in scope from April 2027, because the £30,000 test looks at the £40,000.
That distinction catches people out. Because it is turnover, most full-time tradespeople clear £30,000 comfortably — so if the April 2026 wave passed you by, April 2027 very likely will not.
What actually changes
- You must keep digital records of income and expenses in compatible software.
- You send HMRC a quarterly update of your totals — four a year.
- A final declaration replaces the old annual return, due by 31 January after the tax year.
- Quarterly deadlines are 7 August, 7 November, 7 February and 7 May, each cumulative from 6 April.
How to get ready — the easy way
The mistake is waiting until spring 2027 and then scrambling. The people who will barely notice the change are the ones already keeping digital records now, out of habit. You do not need to become a bookkeeper — you need a tool that captures the data as you work:
- Income that records itself from the invoices you already send
- Receipts captured with a photo, categorised by AI
- Quarterly figures prepared for you, with deadline reminders
Do that and April 2027 is a non-event. Sleepless Tradesman handles all three, and its automatic quarterly submissions mean the figures are ready when the deadline comes. See the accounting features.
Frequently asked questions
Does MTD apply to me if I earn over £30,000?
From April 2027, yes — if your gross income from self-employment and property combined is over £30,000 on your 2025–26 tax return. Gross means turnover before expenses, not profit.
How do I get ready for MTD in 2027?
Start keeping digital records now with MTD-compatible software and get used to capturing income and expenses as you go. Choose a tool that prepares your quarterly figures automatically so the deadline looks after itself.
Get ready for 2027 the effortless way.
Keep digital records automatically from today — invoices become income, receipts become expenses, quarterly figures stay ready.
Try Sleepless Tradesman freeRelated: Making Tax Digital for tradesmen, automatic quarterly tax submissions, best MTD software compared.