Thresholds · £20,000

The £20,000 MTD threshold from April 2028

Last updated 28 October 2026. Every fact below is checked against the sources listed at the end. General information, not tax advice.

Short answer: If your 2026 to 2027 tax return shows qualifying income over £20,000, you need to use MTD for Income Tax from 6 April 2028. Qualifying income is your total turnover from self-employment and property: the amount before expenses, taken from the tax return you submitted for the previous tax year. It can come from more than one source.

Why 2026 to 2027 records matter now

The return that decides April 2028 covers 6 April 2026 to 5 April 2027. Keeping clear records of gross sales and fees for that year makes the figure easy to check. HMRC says turnover for the threshold includes gross income from self-employment and property before any tax allowances or expenses are deducted.

Your first year in MTD

Update	Covers	Due by
Update 1	6 Apr 2028 to 5 Jul 2028	7 Aug 2028
Update 2	6 Apr 2028 to 5 Oct 2028	7 Nov 2028
Update 3	6 Apr 2028 to 5 Jan 2029	7 Feb 2029
Update 4	6 Apr 2028 to 5 Apr 2029	7 May 2029

Standard update periods (the default, aligned to the 6 April to 5 April tax year): 6 April to 5 July, due 7 August; 6 April to 5 October, due 7 November; 6 April to 5 January, due 7 February; 6 April to 5 April, due 7 May of the following tax year. Tax return for 2028 to 2029 due by 31 January 2030. You still submit one tax return a year and pay your tax bill by 31 January after the end of the tax year, now through your compatible software. For tax years after 2026 to 2027, each missed quarterly update or tax return deadline gets a penalty point (only one point per deadline, even with several businesses). At 4 points you get a £200 penalty, and another £200 for each further missed deadline.

Worked example: under £30,000, over £20,000

Example figures Made-up figures for a fictional seller, not real data.

Tax return	Turnover	Result
2025 to 2026	£23,600.00	Under £30,000: not in MTD from April 2027
2026 to 2027	£25,150.00	Over £20,000: MTD from 6 April 2028

The same seller misses the 2027 start but joins in 2028.

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Questions

Can I join earlier?

To sign up you must be registered for Self Assessment and have submitted a tax return in the last two years. Signing up early is allowed.

What about the £30,000 group?

If your 2025 to 2026 tax return shows qualifying income over £30,000, you need to use MTD for Income Tax from 6 April 2027.

Can I use a spreadsheet?

You can keep using spreadsheets for your records, but you'll need software that links to them (sometimes called bridging software) to send quarterly updates and your tax return.

Sources

Using Making Tax Digital for Income Tax for the first time (GOV.UK, checked 28 October 2026)
Sole traders and landlords earning more than £30,000 urged to act now (HMRC, 5 October 2026) (GOV.UK, checked 28 October 2026)
Work out your qualifying income for Making Tax Digital for Income Tax (GOV.UK, checked 28 October 2026)
Send quarterly updates (Making Tax Digital for Income Tax) (GOV.UK, checked 28 October 2026)
Penalties for Making Tax Digital for Income Tax (GOV.UK, checked 28 October 2026)

TidyTill is a record-keeping aid only. This page is general information, not tax advice. TidyTill is not HMRC-recognised software and it doesn't submit anything to HMRC: you send quarterly updates and your tax return through HMRC-recognised software. Rules and dates can change, so check GOV.UK or ask an accountant about your own situation.