MTD for Income Tax: Who Needs to Join in April 2027?
Under HM Revenue & Customs (HMRC) regulations for Making Tax Digital for Income Tax Self Assessment (MTD ITSA) , the digital reporting requirements expand significantly from 6 April 2027 . Following Phase 1 (which applied to individuals earning over £50,000 from April 2026), Phase 2 lowers the entry threshold to £30,000 . MTD for Income Tax: Who Needs to Join in April 2027? 1. Who Is Required to Mandatorily Join in April 2027? You are legally required to keep digital records and submit quarterly updates starting 6 April 2027 if: You are an individual sole trader / self-employed professional , a property landlord , or both. Your total gross qualifying income from self-employment and property combined was more than £30,000 in the 2025/26 tax year . 2. How HMRC Calculates "Qualifying Gross Income" A crucial detail many business owners miss is that eligibility is based on turnover before expenses . Qualifying Income = Gross Self-Employment Sales + Gross Rental ...