MTD £20,000 Threshold: Who Joins in April 2028

From 6 April 2028 Making Tax Digital covers qualifying income over £20,000 on your 2026/27 return, the tax year now under way. Who is in and what to do now.

The last planned step of Making Tax Digital for Income Tax brings in sole traders and landlords with qualifying income over £20,000, starting on 6 April 2028. The figure HMRC tests is the one on your 2026/27 Self Assessment return, which means the year that decides it runs from 6 April 2026 to 5 April 2027. For many people it is under way already.

Who is affected

You join from 6 April 2028 if your self-employment turnover plus your property income, before expenses, is over £20,000 on your 2026/27 return, you were not already brought in at an earlier stage, and you are not exempt. HMRC's statistics, based on 2023/24 returns, put about 975,000 people in the band between £20,000 and £30,000: roughly 637,000 sole traders, 263,000 landlords and 75,000 people with both.

If your qualifying income is £20,000 or less, you are automatically exempt. That is permanent for as long as your circumstances stay the same, and no further threshold has been announced.

What counts towards the £20,000

The same rules as the earlier thresholds. Qualifying income is turnover, not profit: all your self-employment income and all your property income before any expenses, with jointly owned property counted at your share. Salary, pensions, dividends, savings interest and partnership profit shares are left out. Three examples, all using 2026/27 figures:

2026/27 incomeQualifying incomeIn from April 2028?
£45,000 salary and £21,600 rent from one flat (£1,800 a month)£21,600Yes
A tutor turning over £24,000 with £6,000 of costs£24,000Yes
£30,000 of rent from a flat owned 50/50 with a spouse£15,000 eachNo, for either of them

The first example is the one many people miss: a single buy-to-let alongside a full-time job. The salary does not count towards the threshold, but it does not protect you either. The rent on its own is over £20,000. Our qualifying income guide covers the less common cases.

The dates

  • Now to 5 April 2027: the 2026/27 tax year, which decides whether you are in.
  • By 31 January 2028: send your 2026/27 return the normal way.
  • 6 April 2028: you start. Keep digital records from this date.
  • First quarterly update: due 7 August 2028, then 7 November 2028, 7 February 2029 and 7 May 2029.
  • By 31 January 2029: your 2027/28 return, still the normal way.
  • By 31 January 2030: your 2028/29 tax return, your first through Making Tax Digital software.

There is no first-year concession on penalty points for people joining in 2028. That applied to the 2026/27 tax year only. From your first deadline, a late quarterly update or tax return earns a point. The full calendar is in our MTD deadlines guide.

What to do this year

  • Keep an eye on your 2026/27 turnover and rent. If you are close to £20,000, remember that the test is before expenses.
  • Keep good records now. You are not required to use Making Tax Digital software yet, but clean records for 2026/27 make that return easier and mean less to set up later.
  • Consider volunteering. You can sign up for the current or the next tax year before you have to. As a volunteer, late quarterly updates do not earn penalty points, although a late tax return does.
  • Check again every year. If your income falls later, you can opt out once your qualifying income has been below the threshold for three tax years in a row.

Getting ready with VoxaMTD

VoxaMTD sends quarterly updates for self-employment and UK property income, and submits the tax return, directly to HMRC's live Making Tax Digital service. Filing is free, so there is no cost to setting up now and bringing in this year's transactions through open banking or a spreadsheet upload. It uses the standard update periods and does not yet send foreign property updates. It is not yet listed on HMRC's published software finder.

Start free, no card needed · Check when MTD starts for you

This guide is general information based on HMRC's published guidance as at 27 September 2026. It is not tax advice. Thresholds and dates can change, so check GOV.UK before relying on them.

Frequently asked questions

When does the £20,000 MTD threshold start?
On 6 April 2028. You join then if your qualifying income on your 2026/27 Self Assessment return is over £20,000 and you were not brought in earlier.
Which tax year decides whether I join in April 2028?
The 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. HMRC checks the qualifying income on that year's return.
Do I need MTD if my income is under £20,000?
No. If your qualifying income is £20,000 or less you are automatically exempt, although you can still choose to sign up voluntarily.
I have a full-time job and one rental flat. Could I be in?
Yes, if the rent before expenses is over £20,000. Your salary does not count towards qualifying income, so the rent is tested on its own, added to any self-employment turnover you have.
Is there a penalty grace period for people joining in 2028?
No. The concession on late quarterly update penalty points applied to the 2026/27 tax year only. From your first deadline, late quarterly updates and late tax returns earn penalty points.

Related guides

MTD Qualifying Income: What Counts Towards £50,000

What counts towards the Making Tax Digital threshold: turnover not profit, your share of joint rent, and why salary and dividends are left out, with examples.

MTD From April 2027: The £30,000 Threshold Explained

From 6 April 2027 Making Tax Digital covers qualifying income over £30,000 on your 2025/26 return. Who is in, what counts, the deadlines and how to prepare.

MTD Deadlines 2026/27: Quarterly Update Calendar

Every Making Tax Digital deadline for 2026/27 and beyond: quarterly updates due 7 August, 7 November, 7 February and 7 May, and the tax return by 31 January.

Get MTD-ready for free

VoxaMTD is free MTD-compatible software for sole traders and landlords. Quarterly submissions, open banking, AI categorisation — no credit card required.

Start for Free →