Sole traders and landlords with turnover above £30,000 have six months left to prepare for a change in how they report their income to HMRC. According to HM Revenue and Customs, Making Tax Digital (MTD) for Income Tax becomes mandatory for this group from 6 April 2027, and those affected are being urged to sign up early on GOV.UK.
Key points
- Who — sole traders and landlords with turnover over £30,000.
- When — from 6 April 2027.
- Numbers — around 1,077,000 more people will be required to join.
- What to do — sign up on GOV.UK and choose compatible software.
Turnover for the threshold means gross income from self-employment and property before tax allowances or expenses are taken off. Signing up early lets customers check their MTD details are right from the start and gives them time to find software that suits them. Agents can also sign clients up through GOV.UK.
Under the rules, digital records must be kept and income and expenses sent to HMRC quarterly using recognised software, alongside the annual tax return. HMRC stresses that quarterly updates are not extra tax returns but short summaries. Keeping digital records through the year can save the hours usually spent gathering paperwork at tax return time and avoid the January rush.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “Signing up now means you can prepare and familiarise yourself with the process before it becomes mandatory next April.” He added that hundreds of thousands of sole traders and landlords are already using the service successfully.
The move follows the launch of MTD for Income Tax for those earning more than £50,000, which became mandatory in April 2026. Their next quarterly update is due on 7 November. From April 2028, the threshold will drop again to £20,000. To sign up, customers must be registered for Self Assessment and have filed a tax return in the last two years. Some exemptions apply, including for those who are digitally excluded.
What it means in practice
If you are a sole trader or landlord with turnover above £30,000, you will soon have to keep digital records and send quarterly updates to HMRC. That means choosing software, learning how it works and adjusting your bookkeeping routine before next April. Acting now avoids a last-minute scramble.
- Check your turnover — it is gross income from self-employment and property before allowances or expenses.
- Sign up early — you can register on GOV.UK and pick software in your own time.
- Plan ahead — quarterly updates are summaries, not extra tax returns, but they change how you manage your records.
