The short version
- From 6 April 2027 the threshold is £30,000.
- It falls to £20,000 in April 2028.
- Qualifying income means turnover, not profit.
Making Tax Digital for Income Tax began on 6 April 2026 for people with qualifying income over £50,000. It drops to over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.1
| Starts | Qualifying income over | Based on tax year |
|---|---|---|
| 6 April 2026 | £50,000 | 2024 to 2025 |
| 6 April 2027 | £30,000 | 2025 to 2026 |
| 6 April 2028 | £20,000 | 2026 to 2027 |
Why trades get caught out
Qualifying income means your self-employment and property income before expenses. A plasterer who turns over £35,000 but buys a lot of materials may have a small profit. They are still in scope.1
Partnerships are not yet included. HMRC says their timeline will be set later.1
Get ready now
- Check your 2025 to 2026 turnover.
- Pick software that works on your phone.
- Start photographing receipts now.
- Open a separate business bank account if you do not have one.
Sources
- Check if you're eligible for Making Tax Digital for Income Tax, HMRC. Accessed 11 November 2026.
General information only. This is not legal, insurance or financial advice. Your own policy wording decides what is covered.