MAKING TAX DIGITAL FOR INCOME TAX
Making Tax Digital for £30k sole traders starts 6 April 2027
If your turnover plus any rental income was over £30,000 in 2025-26, you'll keep digital records and send HMRC four updates a year from 6 April 2027. Here's who's affected, what changes and what to do before the date.
Countdown
154
days until 6 April 2027
First quarterly update due by 7 August 2027
Threshold
Over £30,000
Based on
2025-26 income
Updates
4 a year
Who's affected
Sole traders and landlords registered for Self Assessment whose qualifying income was over £30,000 in the 2025-26 tax year. Qualifying income is your total income from self-employment and property before expenses: your turnover, not your profit. Your share of jointly owned property counts too (GOV.UK).
HMRC estimates that around 1,077,000 more sole traders and landlords will need to create digital records from 6 April 2027, based on its analysis of 2024-25 Self Assessment returns (HMRC, 5 October 2026).
Counts towards the £30,000
- Sole trader turnover, before expenses
- CIS work at the gross amount, before deductions
- UK property income (rent)
- Foreign property income, if you were UK resident
Doesn't count
- Wages from a PAYE job
- Your share of partnership profit
- Dividends, including from your own company
- State and private pensions
Source: Work out your qualifying income (GOV.UK). That page doesn't mention CIS: CIS work is self-employment income, and the turnover on your tax return is the gross amount before CIS deductions.
Where 2027 sits in the rollout
6 April 2026
Over £50,000 in 2024-25
Already live. 436,000+ people had sent their first quarterly update by 12 August 2026. Source
6 April 2027
This page
Over £30,000 in 2025-26
Around 1,077,000 more people, according to HMRC. Source
6 April 2028
Over £20,000 in 2026-27
Approximately 970,000 more, according to HMRC. Source
What changes on 6 April 2027
- Digital records. Every sale and expense is recorded in software, not a paper book or a shoebox of receipts.
- Four quarterly updates. Short summaries of your income and expenses, sent through HMRC-recognised software. They're cumulative: each one covers the tax year so far from 6 April.
- The tax return stays. You still file a return by 31 January after the tax year, and pay any tax due by then.
- Penalty points. From 6 April 2027, one point for each late quarterly update or return. At 4 points, a £200 penalty, then £200 for each further miss (GOV.UK).
Your 2027-28 deadlines (standard update periods)
Calendar update periods (1 April to 30 June and so on) have the same deadlines. You choose before your first update and can't change for the rest of the tax year. Source: Send quarterly updates (GOV.UK).
What to do now
- 1
Check your 2025-26 figures
Add your turnover and rent before expenses. The MTD checker does it for you and shows your first deadline.
- 2
File your 2025-26 return on time
It's due by 31 January 2027, and it's the return HMRC uses to decide if you're in from April 2027.
- 3
Start keeping digital records before April
Get used to logging income and receipts as you go, so the first quarter isn't a scramble.
- 4
Sign up on GOV.UK
You need to be registered for Self Assessment and have filed a return in the last two years. An accountant can sign you up. Sign up guidance
- 5
Choose HMRC-recognised software for the updates
HMRC keeps a list. Find compatible software
- 6
Think you can't use software?
Some people, such as those who are digitally excluded, can apply for an exemption. Exemptions
How the app helps
Sleepless Tradesman keeps your books while you work, so the quarterly figures are already there when the deadline comes.
Income from your invoices
Every invoice you send is recorded as income automatically.
Receipts from a photo
Snap a receipt and the AI files it under the right HMRC expense category.
Cumulative quarterly figures
Worked out in the format HMRC's quarterly updates use, ready to export for you or your accountant.
Deadlines in view
The Accounting tab shows your next quarterly deadline and how many days are left.
Filing to HMRC: Filing from the app is built and tested in HMRC's sandbox but is not yet available: HMRC closed production access for new 2026-27 products on 15 September 2026. Until it is, you or your accountant send the figures through HMRC-recognised software.
Accounting is included in every paid plan. See the accounting features.
Try the app freeQuestions about April 2027
When does Making Tax Digital start for people earning over £30,000?
On 6 April 2027. It applies to sole traders and landlords whose qualifying income was over £30,000 in the 2025-26 tax year, which is the return due by 31 January 2027.
Is the £30,000 based on turnover or profit?
Turnover. HMRC counts your total income from self-employment and property before expenses. Someone who invoices £38,000 and spends £14,000 on materials and van costs is over the threshold, even though their profit is £24,000.
How many quarterly updates do I send, and when?
Four a year, due by 7 August, 7 November, 7 February and 7 May. Each one covers the tax year so far from 6 April, so you are topping up the same running total. For 2027-28 the first is due by 7 August 2027 and the tax return by 31 January 2029.
What happens if I send a quarterly update late?
From 6 April 2027 you get a penalty point for each late quarterly update or tax return. When you reach 4 points you pay a £200 penalty, and another £200 for each later missed deadline. There are no penalty points for late quarterly updates in the 2026-27 tax year.
I'm in a partnership or run a limited company. Does this apply to me?
Not for that income. Your share of partnership profit, a salary and dividends from your own company don't count towards qualifying income. HMRC says partnerships will need to use Making Tax Digital in the future but hasn't set a date. If you also work as a sole trader or rent out property, that income does count.
What if I'm under £30,000?
From 6 April 2028 the threshold drops to over £20,000, based on your 2026-27 income. HMRC estimates that change brings in approximately 970,000 more sole traders and landlords.
Can I be exempt?
Some people can, for example if you're digitally excluded and can't reasonably use software. You apply to HMRC for an exemption. If you're exempt you still file a Self Assessment tax return.
Does Sleepless Tradesman file my quarterly updates to HMRC?
Not yet. The app keeps your digital records and prepares your cumulative quarterly figures in the format HMRC's quarterly updates use, ready to export for you or your accountant. Filing from the app is built and tested in HMRC's sandbox but is not yet available: HMRC closed production access for new 2026-27 products on 15 September 2026. Until it is, you or your accountant send the figures through HMRC-recognised software.
Sources
Every figure on this page comes from GOV.UK. Checked 2 November 2026. HMRC can change the rules, so check the linked page before you rely on it.
- Check if you're eligible for Making Tax Digital for Income Tax (GOV.UK, 26 March 2026)
- Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK, 11 September 2026)
- Use Making Tax Digital for Income Tax: send quarterly updates (GOV.UK, 16 October 2026)
- Penalties for Making Tax Digital for Income Tax (GOV.UK, 30 March 2026)
- HMRC press release: sole traders and landlords earning more than £30,000 urged to act now (GOV.UK, 5 October 2026)
- HMRC press release: 436,000 sole traders and landlords make their tax digital (GOV.UK, 12 August 2026)
- HMRC policy paper: reduction of the mandation threshold from £30,000 to £20,000 from April 2028 (GOV.UK, 24 March 2026)
- Sign up for Making Tax Digital for Income Tax (GOV.UK)
- Find software that's compatible with Making Tax Digital for Income Tax (GOV.UK)
- Apply for an exemption from Making Tax Digital for Income Tax (GOV.UK)