Making Tax Digital for Income Tax: the £20,000 threshold from April 2028

 

From 6 April 2028, Making Tax Digital for Income Tax will extend to sole traders and landlords with qualifying income over £20,000. This is the final phase of the rollout — and while 2028 may sound a long way off, now is the right time to prepare.

 

How the rollout works

MTD for Income Tax became mandatory from 6 April 2026 for those with qualifying income over £50,000. The threshold drops to over £30,000 from 6 April 2027, and then to over £20,000 from 6 April 2028 (announced at Spring Statement 2025).

 

What counts as qualifying income

Your qualifying income is your total income from self-employment and property — before expenses. PAYE income, dividends, partnership profit shares and pensions don't count. HMRC reviews your Self Assessment tax return each year and writes to you if you're in scope.

 

Act now

HMRC recently urged sole traders and landlords earning over £30,000 to get ready now (gov.uk, 5 October 2026). If your income is approaching any of these thresholds, the sensible steps are: check your qualifying income for each tax year, choose MTD-compatible software early, and start keeping digital records before it becomes mandatory. Signing up voluntarily lets you bed the process in at your own pace rather than under a deadline.