When will MTD apply to me?

It already applies (from April 2026) if your combined self-employment and property income was over £50,000 in 2024-25. It reaches those over £30,000 from April 2027 and over £20,000 from April 2028. The test is gross qualifying income, not profit.

Is it income or profit that counts towards the MTD threshold?

Gross qualifying income — turnover from self-employment plus gross rents, before any expenses. A landlord with £32,000 of rent and £25,000 of costs is over the £30,000 threshold, not under it.

Can I keep using spreadsheets under MTD?

Only with bridging software that links the spreadsheet digitally to HMRC. The digital link rules prohibit retyping figures. In practice, proper bookkeeping software is less work than maintaining a compliant spreadsheet-plus-bridge setup.

What should I do before my start date?

Confirm your qualifying income against the thresholds, choose MTD-compatible software, separate business and personal banking, get your records digital and current, and decide who files the quarterly updates — you or your accountant. Doing this the tax year before your start date makes the transition a non-event.

Compliance8 min readAugust 2026By Peter, Founder

MTD is coming for your self assessment — the checklist before your turn

Making Tax Digital for Income Tax went live in April 2026 for the £50,000+ group. If that wasn't you, this is not a reprieve — it is a queue. April 2027 brings in everyone over £30,000 of qualifying income, and April 2028 everyone over £20,000. Here is what to check before your turn arrives, in the order that saves the most pain.

1. Work out your qualifying income — properly

The threshold tests gross qualifying income: self-employment turnover plus gross property income, added together, before expenses. Not profit. A side consultancy at £18,000 plus a rental at £14,000 is £32,000 — in scope from April 2027 even though neither activity alone crosses the line. HMRC assesses you on the return you filed two years before the start date, so your 2025–26 return is what decides your April 2027 fate.

2. Know your date

Over £50,000 — you should already be in. If you are not, act now: the points-based penalties are accruing.
Over £30,000 — April 2027. Your 2025–26 return determines it.
Over £20,000 — April 2028, announced and legislated for.
Under £20,000 — outside for now; the government has signalled it will keep the threshold under review.

3. Choose software before it chooses you

Quarterly updates must go through MTD-compatible software with digital links all the way — copy-and-paste from a spreadsheet into a portal does not qualify. Spreadsheets survive only via bridging software, and honestly: by the time a spreadsheet is compliant, it is more work than proper bookkeeping software. Pick once, pick early, and get a tax year of practice before the deadline year.

4. Separate the bank accounts

The single change that makes everything else easy. If business income and personal spending share an account, every quarterly update becomes an archaeology dig. A dedicated business account with a bank feed into your software turns the quarterly update into a by-product of records that already exist.

5. Understand the new rhythm

Four cumulative quarterly updates per trade or property business, each due roughly a month after the quarter ends, plus a final declaration after year end where the accounting adjustments and reliefs happen. No tax is due with the quarterly updates — but a missed one earns a penalty point, and points convert to fines. Landlords with a trade on the side file for both, which is two sets of quarters. Plan who does what: you keep the records daily, someone qualified reviews quarterly, and year end stops being a crisis.

6. Use the run-up year deliberately

The businesses that found April 2026 painless were the ones already keeping digital records in 2025. If your date is April 2027, make 2026–27 the practice year: software live, feeds connected, receipts captured as they happen. You also get something for it — a real-time view of profit, which means a tax bill you saw coming and money set aside in a way January never taught anyone.

What we do for clients

Our bookkeeping clients were MTD-ready before the first deadline by default — the quarterly update is a filing we make from records that are already current. If you are in the 2027 or 2028 wave and want the transition to be boring, the time to set up is this tax year, not the month before your start date.

Rates and rules change. This article reflects the position as at August 2026 and is general guidance, not advice on your specific circumstances. Already in the April 2026 wave? Read what changed at the start.