Making Tax Digital for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income above £50,000. The next wave arrives on 6 April 2027 and covers those with qualifying income above £30,000. If that could be you, the next few months are the time to get ready. This article is general information, so confirm your own position on GOV.UK or with your accountant.
Who is in the April 2027 group?
HMRC looks at your qualifying income, which is your gross income from self-employment and property before expenses. The April 2027 group is people whose qualifying income was above £30,000 in the 2025/26 tax year, as shown on your Self Assessment return for that year, and who were not already in the first wave. A further group with income above £20,000 follows in April 2028.
- It is gross income, not profit. Turnover of £32,000 with £8,000 of expenses still counts as £32,000.
- Self-employment and property are added together. A sole trader with £22,000 of trading income and £9,000 of rental income is over the line.
- Your 2025/26 return decides it. That return is due by 31 January 2027, so you will know your position soon after you file.
Key dates
- 31 January 2027: file your 2025/26 Self Assessment return and pay any tax due.
- 6 April 2027: Making Tax Digital for Income Tax starts for this group.
- 7 August 2027: the first quarterly update (6 April to 5 July 2027) is due.
- 7 November 2027, 7 February 2028, 7 May 2028: the other quarterly updates.
- 31 January 2029: the first final declaration (for 2027/28) is due. HMRC has adjusted the steps while rolling the scheme out, so check GOV.UK for the current process.
See our deadlines for 2026 to 2028 for the full calendar.
What changes for you
- Digital records. You keep income and expenses in software, not on paper or loose spreadsheets.
- Quarterly updates. You send HMRC a summary of income and allowable expenses four times a year.
- A final declaration after the tax year ends, instead of the usual annual return.
Your tax payment dates do not change: 31 January and 31 July for payments on account.
Your preparation plan
- Now to January: work out your gross income for 2025/26 and file your return early.
- Check HMRC’s guidance and confirm whether you are in the April 2027 group. You may be able to join voluntarily earlier, so ask your accountant.
- Choose your software and move your records into it before April, so the first quarter starts clean.
- Practise a quarter. Reconcile your bank each month and run a profit and loss for the quarter, as if you were sending an update.
- Diary the dates and plan to send each update a few days early.
How AvrioBooks helps
AvrioBooks keeps your invoices, bills and bank statements in one set of books. When Making Tax Digital applies to you, connect to HMRC under Income Tax, fetch your obligations, upload and map your income and allowable expenses, review the totals and submit. This needs the Standard plan or above and depends on HMRC approval, so contact us to confirm availability first. See Making Tax Digital software and the step-by-step quarterly update walkthrough.
Frequently asked questions
Who is affected by Making Tax Digital in April 2027?
Sole traders and landlords whose qualifying income was above £30,000 in the 2025/26 tax year, and who were not already in the £50,000 group from April 2026.
Is the £30,000 threshold income or profit?
It is gross income from self-employment and property, before expenses.
When is the first quarterly update for the April 2027 group?
The first quarter runs from 6 April to 5 July 2027, and the update is due by 7 August 2027.
Do my tax payment dates change?
No. Payments on account and balancing payments stay on 31 January and 31 July.
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