MTD for Income Tax: the 2027 expansion every sole trader and landlord must prepare for
The biggest change to self-employed tax reporting in a generation is about to sweep up a huge new group of businesses. From 6 April 2027, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) extends to sole traders and landlords with qualifying income over £30,000, and government figures put the expansion at around 1.07 million more businesses entering MTD. The threshold then drops to £20,000 from April 2028. If you are anywhere near those thresholds, now is the time to understand what MTD for Income Tax actually requires and start building the habits it demands. This is a systems change, not just a new form, and the people who prepare early will find it painless. The ones who wait until March 2027 will have a stressful spring. Who is caught, and when The rollout follows the income threshold bands: From April 2026 : sole traders and landlords with qualifying income over £50,000 are already in. From 6 April 2027 : the threshold drops to £30,000, pulling in roughly 1.07...