Under £30,000? Why the 2026/27 tax year already matters for MTD
From April 2028, Making Tax Digital reaches sole traders and landlords with qualifying income over £20,000. The income that decides it is being earned right now.
Many small landlords and sole traders assume Making Tax Digital is for bigger businesses. From April 2028 it is not. Anyone whose self-employment and property income before expenses is over £20,000 in the 2026/27 tax year will need to use it from 6 April 2028.
That covers a lot of people: a tradesperson with a van and steady work, a landlord with one city flat, or someone with a side business alongside a job. Their wages do not count; their gross business and rental income does.
Why start now
The switch is easier when the year you are tested on is already in software. You will see your qualifying income building up, and you will know long before HMRC’s letter whether you are in. You will also have a year of practice, with no penalties at stake.
- Open a separate bank account for the business or the property.
- Try a compatible app with a bank feed for a few months.
- Keep receipts digitally from today.
This insight is general information, not advice for your circumstances. Talk to us before acting on it.