FREE MAKING TAX DIGITAL GUIDE

Making Tax Digital:
When Will It Affect You?

A straightforward guide for sole traders and landlords who want to understand when they may need to start keeping digital records and reporting through compatible software.

View the Quick Guide

Before You Check The Examples

Making Tax Digital for Income Tax is being introduced in stages. It applies to many sole traders and landlords whose qualifying income exceeds HMRC's thresholds.

Important: The thresholds are based on qualifying gross income before expenses, not business profit. If you have both self-employment and property income, these amounts are generally considered together.

ARE YOU IN ONE OF THESE GROUPS?

MTD Eligibility Quick Guide

These simplified scenarios show when a person is likely to enter Making Tax Digital for Income Tax, subject to individual circumstances and any applicable exemption.

From April 2026 From April 2027 From April 2028 Not currently mandated

Example Making Tax Digital eligibility scenarios
Example situation	Qualifying gross income	Likely start date
Sole trader Self-employment only	£55,000	From 6 April 2026
Sole trader Self-employment only	£45,000	From 6 April 2027
Landlord Property income only	£55,000	From 6 April 2026
Landlord Property income only	£45,000	From 6 April 2027
Sole trader and landlord £30,000 self-employment plus £25,000 property income	£55,000 combined	From 6 April 2026
Sole trader and landlord £25,000 self-employment plus £6,000 property income	£31,000 combined	From 6 April 2027
Small sole trader Self-employment only	£25,000	From 6 April 2028
Business partnership Partnership income only	Any amount	Not Currently Mandated
Employee PAYE employment income only	No self-employment or property income	Out of Scope

This table provides general examples only. It is not a substitute for advice based on your individual circumstances. Exemptions may apply, and HMRC guidance should be checked before taking action.

Why Start Preparing Now?

Many sole traders and landlords currently keep records using spreadsheets, paper records or a collection of receipts.

Preparing early allows you to:

Move to digital record keeping gradually.
Learn bookkeeping software before deadlines arrive.
Reduce stress when quarterly reporting begins.
Avoid a last-minute rush to become compliant.
Gain better visibility of your business finances.

Not Sure If You're Affected?

As an ICB-qualified bookkeeper and Xero Certified Professional, I can help you understand whether Making Tax Digital is likely to apply to your circumstances and what steps you may need to take next.

Contact Crawley Down MTD