The April 2027 MTD Deadline: Are You Earning Over £30,000?
The £50,000 threshold is just the beginning. April 2027 brings MTD to sole traders earning £30,000+. Here's the timeline and why you should prepare now.
Most conversations about Making Tax Digital for Income Tax focus on the April 2026 launch and the £50,000 threshold. But here's what many sole traders miss: that's just phase one. The government's phased rollout continues, with April 2027 bringing MTD to a far broader group—anyone earning over £30,000. And then, in April 2028, the threshold drops again to £20,000. Understanding this timeline and preparing now prevents panic transitions later.
The Complete Government Timeline for MTD Rollout
HMRC has published a clear schedule for expanding MTD compliance. Here's the full picture of what's coming:
April 2026: The First Wave (£50,000+)
Sole traders and partnership members with qualifying income above £50,000 become mandated to use MTD. This is the largest group in the initial rollout.
April 2027: The Second Wave (£30,000+)
The threshold drops to £30,000. Any sole trader with qualifying income above this level must adopt MTD for the 2027/28 tax year onwards. This captures many more small business owners and self-employed professionals.
April 2028: The Third Wave (£20,000+)
The threshold drops to £20,000. This is a significant expansion, capturing the vast majority of sole traders across the UK. Eventually, MTD will apply to all sole traders regardless of income level.
Why This Matters for Sole Traders Earning £30,000–£50,000
If you're currently earning between £30,000 and £50,000 in qualifying income, you're in an interesting position. Here's what you need to know:
You Still Have Time, But Not Much
You're not in scope for April 2026. But from April 2027, you'll be legally required to use MTD. That gives you approximately 12 months to prepare—but that time goes fast.
The Search Volume Is Rising
Smart business owners earning £30k–£50k are already researching April 2027 MTD. They're getting ahead of the curve. So should you.
You Can Avoid Panic
Business owners who wait until March 2027 face chaos: time pressure, hasty migrations, and compliance errors. Those who start now are stress-free.
Early Adopters Save Money
Cloud platforms offer free trials and introductory pricing now. Once MTD is mandatory, you pay full price.
What "Qualifying Income Over £30,000" Means
Just like the April 2026 threshold, the April 2027 £30,000 figure refers to qualifying income—gross business income before expenses—not profit.
Real Examples from Sole Traders
Freelance copywriter: Invoices £35,000 in client work = qualifying income £35,000 (in scope April 2027)
Plumber: Annual turnover £28,000 = qualifying income £28,000 (under threshold)
Virtual assistant: Multiple clients totalling £40,000 per year = qualifying income £40,000 (in scope April 2027)
Consultant with rental property: Consulting income £32,000 + rental income £8,000 = MTD qualifying income £32,000 (in scope April 2027)
The Case for Preparing Now
You might think, "I'm earning £28,000 now; April 2027 doesn't apply to me." But consider these practical realities:
Income Growth Is Unpredictable
A busy year, a new client, or a price increase could push you over £30,000. Start digital record-keeping now to be ready regardless.
Software Costs Are Minimal Now
Xero and other platforms offer free trials and introductory pricing for early adoption. Delaying means paying full price later.
Better Records Mean Better Decisions
Real-time accounting helps you understand profitability, spot cash flow issues, and identify tax savings early.
You'll Avoid Transition Stress
Migrating records under time pressure is chaotic. Starting now, on your schedule, is far less stressful.
Phased Compliance: The Smart Approach
Rather than waiting for your threshold date, adopt a smarter phased approach:
Phase 1: Assess Your Current System (Now)
Are you on spreadsheets, desktop software, or cloud platforms? Identify gaps in your record-keeping while you have time.
Phase 2: Choose & Set Up MTD Software (Next 3–6 Months)
Select Xero, set it up, and begin migrating records. Don't wait until February 2027 when support queues are long.
Phase 3: Establish Monthly Review Habits (Ongoing)
Get comfortable with regular record review. By April 2027, quarterly submissions will feel routine, not onerous.
Phase 4: Professional Support (From Your Threshold Date)
Once in scope, have professionals prepare and file quarterly summaries. Remove all stress, never miss a deadline.
The Penalty Risk of Waiting
HMRC's New Points-Based Penalty System
- • Late quarterly submission: 1 point + financial penalty
- • Repeated late submissions: Points accumulate; penalties escalate
- • Not using MTD software when mandatory: Potential penalties and submission rejection
How Figures UK Helps You Prepare
Whether you're in scope for April 2026 or April 2027, we help you transition smoothly and stay compliant:
MTD Readiness Assessment
We review your current record-keeping and create a timeline for transitioning before your deadline.
Xero Setup & Migration
We handle your complete Xero setup, migrate historical records, and train you on best practices.
Monthly Bookkeeping & Review
We maintain your books monthly so records stay current and quarterly summaries are accurate.
Quarterly MTD Filing
When your date arrives, we prepare and file your quarterly summaries. You never worry about deadlines.
Fixed Monthly Fee
Everything is included in one predictable price. No surprise bills, no hourly charges.
Key Takeaways
- →April 2027 brings MTD to sole traders earning over £30,000
- →April 2028 drops the threshold to £20,000, leading to universal MTD eventually
- →Starting digital record-keeping now prevents panic later
- →Software costs are lowest now, before mandates take effect
- →Professional support ensures you never miss deadlines or penalties
Ready to Get Ahead of April 2027?
If you're a sole trader earning between £30,000 and £50,000, April 2027 is on the horizon. Now is the time to assess your record-keeping, choose appropriate software, and establish habits that make quarterly MTD compliance effortless.
Contact Figures UK to discuss your MTD readiness and set up a plan that ensures you're compliant and stress-free when April 2027 arrives—and well-prepared for April 2028 and beyond.
Get In Touch
Get In Touch With Us
Want a fixed monthly quote or a quick chat about switching accountants? Send us a message — we'll reply with clear next steps.
Worried about switching? Don't be.
You can move to Figures UK at any point in the year — no need to wait for year end. We handle the entire handover, including moving your records and transferring everything to HMRC, so the switch is seamless and stress-free for you.