MTD Checklist for Tradespeople 2027: Everything You Need to Do Before April
Written by Tom Ellis · Senior Trades Editor
Last updated: 9 November 2026
Quick Answer
Making Tax Digital for Income Tax is mandatory for self-employed tradespeople with turnover over £30,000 from 6 April 2027. You need to: sign up with HMRC before the deadline, pick compatible software, start keeping digital records, and send four quarterly updates plus a final declaration each year.
HMRC is offering a soft landing in 2027–28 — no penalty points for missing quarterly updates in your first year — but you still need to be signed up and using the software.
Does MTD apply to you from April 2027?
MTD for Income Tax applies from 6 April 2027 if your total self-employment and/or property income exceeds £30,000 in the tax year ending 5 April 2026. From April 2028 the threshold drops to £20,000, pulling in even more tradespeople.
If you're unsure whether your income level triggers the requirement, see our detailed guide on who needs to do Making Tax Digital.
Quick income check
Your annual turnover — not profit — is what HMRC measures. If your combined self-employment income was over £30,000 in the 2025–26 tax year, you're in scope for April 2027.
The MTD 2027 checklist for tradespeople
1. Confirm you're in scope
- ✓Check your 2025–26 total self-employment income was over £30,000
- ✓Include any rental income you receive alongside your trade income
- ✓If you're a CIS subcontractor, your gross turnover counts — not what lands in your bank after the deduction
2. Choose MTD-compatible software
- ✓Pick software from HMRC's approved list
- ✓Make sure it covers both quarterly submissions and the year-end final declaration
- ✓Check it can handle CIS deductions if you're a subcontractor
- ✓See our MTD software comparison for tradespeople
3. Sign up with HMRC
- ✓Create or log in to your HMRC online account (Government Gateway)
- ✓Sign up for MTD for Income Tax via GOV.UK — HMRC will confirm your start date
- ✓Sign up before your 6 April 2027 start date — late sign-up can cause filing complications
- ✓Connect your chosen software to HMRC through the app's MTD authorisation flow
4. Set up digital record-keeping
- ✓Record every income transaction digitally from 6 April 2027 — paper records alone no longer comply
- ✓Record every allowable expense digitally, with the right category (materials, fuel, tools, etc.)
- ✓Keep a photo or scan of each receipt — you don't have to send them to HMRC, but you must be able to produce them on request
- ✓Categorise mileage and vehicle costs correctly if you use a van or car for work
5. Send quarterly updates on time
- ✓Quarter 1 (6 Apr – 5 Jul): submit by 5 August 2027
- ✓Quarter 2 (6 Jul – 5 Oct): submit by 5 November 2027
- ✓Quarter 3 (6 Oct – 5 Jan): submit by 5 February 2028
- ✓Quarter 4 (6 Jan – 5 Apr): submit by 5 May 2028
- ✓Remember: in 2027–28 there are no penalty points for missed quarterly submissions — but you should still aim to submit on time
6. File your final declaration
- ✓After Quarter 4, complete your year-end final declaration via your MTD software
- ✓Add any additional income not covered by quarterly updates (dividends, savings interest, etc.)
- ✓Claim any additional reliefs (pension contributions, Gift Aid, etc.)
- ✓File and pay any tax owed by 31 January 2028
7. If you use an accountant
- ✓Tell your accountant you're in scope for April 2027
- ✓Agree who will handle MTD sign-up — you or them
- ✓Confirm which software you'll both use and who submits the quarterly updates
- ✓Check whether your accountant charges extra for quarterly MTD submissions
Key MTD dates for 2027
| Date | What happens |
|---|---|
| By 5 April 2027 | Sign up with HMRC for MTD for Income Tax |
| 6 April 2027 | MTD mandatory — digital record-keeping starts |
| 5 August 2027 | Quarter 1 submission deadline |
| 5 November 2027 | Quarter 2 submission deadline |
| 5 February 2028 | Quarter 3 submission deadline |
| 5 May 2028 | Quarter 4 submission deadline |
| 31 January 2028 | Final declaration and tax payment due |
The soft landing in 2027–28
HMRC has confirmed that tradespeople who join MTD in April 2027 will not receive penalty points for missed quarterlysubmissions during the 2027–28 tax year. This “soft landing” gives you time to get used to the new rhythm without the risk of an immediate fine.
The soft landing applies to quarterly updates only. The final declaration deadline of 31 January 2028 is not covered — late final declarations attract the usual penalties.
From 2028–29 onwards the full MTD penalty points system applies. Miss a quarterly update and you rack up a penalty point; four points in a 24-month window triggers a £200 fine.
Common mistakes to avoid
- ✕Signing up too late: HMRC expects you to sign up before your start date. Leave it until after 6 April and you may face an overlapping Self Assessment period that creates confusion.
- ✕Using non-compatible software: Not all accounting apps submit MTD quarterly updates. Check the HMRC approved list — don't assume your current app will work without verifying.
- ✕Forgetting CIS deductions: CIS subcontractors report their gross income in MTD updates. The CIS deduction is reclaimed separately via the final declaration, not taken off before submitting.
- ✕Paper-only receipts: You need a digital record of each transaction. Take a photo of each receipt immediately — it only takes a second and protects you if HMRC queries anything.
- ✕Thinking the accountant sorts it: MTD sign-up must be done under your own Government Gateway account. Your accountant can be an agent, but you need to initiate the sign-up yourself.
MTD checklist FAQs
Do I need MTD if my accountant does my tax return?
Can I keep using spreadsheets under MTD?
What counts as a digital record?
What if I go below £30,000 after signing up?
Is VAT MTD the same as Income Tax MTD?
Related MTD guides
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