Making Tax Digital from April 2027: what sole traders and landlords need to know
Making Tax Digital (MTD) for Income Tax will apply to more sole traders and landlords from 6 April 2027. If your combined gross income from self-employment and property was over £30,000 in the 2025/26 tax year, you may need to use the new system.
The £30,000 threshold is based on income before expenses, not profit. Income from more than one self-employment or property source is added together.
What will change?
If MTD applies to you, you will need to use compatible software to:
Keep digital records of your business or property income and expenses
Send quarterly updates to HMRC
Submit your annual tax return
For many people, the biggest adjustment will be keeping records throughout the year rather than gathering everything when the tax return is due. Choosing how you will manage those records now gives you time to put a workable process in place before April 2027.
How HALKIN can help
You can manage much of the process yourself or ask us to take on more of the record keeping and reporting. Our standard options are:
Go Solo: You maintain your records and manage your MTD submissions. Your fee will be similar to what you currently pay for your tax return.
You keep the records, we review and file: £120 per quarter, plus VAT, per business.
Full HLD Service: £180 per quarter, plus VAT, per business.
A one-off MTD registration fee of £75, plus VAT, also applies.