Further registration for Making Tax Digital

by Aitch, posted in Income Tax

Making Tax Digital (MTD) for Income Tax is being rolled out in stages for sole traders and landlords who complete self-assessment returns. Liability to register depends on the level of “qualifying income”, which includes income from self-employment and property.

Since April 2026, those with qualifying income over £50,000 have been required to maintain digital records and submit quarterly updates of trading or property income and expenses

Further registration for MTD will be required from April 2027, when the threshold will reduce to £30,000, and in April 2028 it will further reduce to £20,000. The thresholds are based on income reported for the previous tax year, meaning your obligation to join MTD is triggered by your most recently submitted self-assessment return.

For example, the £30,000 threshold that applies from 6 April 2027 is linked to your qualifying income for the 2025–26 tax year. If your reported income for that year exceeds £30,000, you will be required to start using MTD from April 2027.

HMRC reviews your self-assessment return each year to determine your qualifying income. If you exceed the relevant threshold, they will normally write to confirm when you must start using the system. However, even if you do not receive a letter, it remains your responsibility to check whether you are required to comply and to prepare in time.

If you believe you fall within the rules but have not been notified, you should check your income against the thresholds and ascertain whether you are required to sign up.

Source:HM Revenue & Customs | 08-06-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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