The £30,000 threshold starts 6 April 2027
One tax return a year
is about to become five.
Making Tax Digital for Income Tax replaces the annual Self Assessment return with four quarterly updates and a final declaration. It has already started. Whether it catches you depends on your gross income — not your profit.
Next quarterly deadline
7 November 2026
Covering
6 July 2026 — 5 October 2026
81
days away
When it starts for you
April 2026
Over £50,000
gross income · tax year 2026/27
April 2027
Over £30,000
gross income · tax year 2027/28
April 2028
Over £20,000
gross income · tax year 2028/29
The mistake nearly everyone makes
The threshold is measured on gross income before any expenses, and self-employment and rental income are added together. A sole trader turning over £35,000 who also receives £20,000 of rent has qualifying income of £55,000 — in scope from April 2026, despite a profit that might be half of that.
Counts towards the threshold
- Gross self-employment turnover — everything invoiced or received, before any expenses
- Gross UK property income — total rent received, before mortgage interest or costs
- Gross foreign property income
Does not count
- Employment income taxed under PAYE
- Dividends
- Pension income
- Savings interest
- Capital gains