For MTD for Income Tax, HMRC looks at qualifying income from self-employment and property before expenses, using the relevant prior tax return to determine the start date.
Making Tax Digital
MTD for Income Tax: the thresholds are already moving.
Sole traders and landlords are entering HMRC’s digital reporting regime in stages. Here is the current timetable and what it means in practice.
Fixed monthly scopeChartered-led reviewUK-based
From 6 April 2026Qualifying income over £50,000
From 6 April 2027Qualifying income over £30,000
From 6 April 2028Qualifying income over £20,000
Qualifying income for these thresholds is based on the relevant self-employment and property income rules used by HMRC. Last reviewed: September 2026.
What changes under MTD for Income Tax?
You need compatible software, digital records of business income and expenses, quarterly updates and the year-end tax return process through MTD-compatible software. The exact start date depends on qualifying income from the relevant earlier tax year.
How Ledger Grove can help
The practical challenge is not just pressing “submit” four times a year. The records need to stay digital and sufficiently organised throughout the year. Ledger Grove can support the bookkeeping process, keep the reporting timetable visible and deal with the accounting around the final tax position.
Straight answers
Questions people ask before choosing an accountant
No. The rollout is staged. The £50,000 threshold applies from April 2026, £30,000 from April 2027 and £20,000 from April 2028 under the current timetable.
Yes. MTD changes the digital record-keeping and reporting process; there is still a year-end process to finalise the tax return information.
An authorised agent can support the process using compatible software, subject to the necessary HMRC authorisations.
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