Most articles about Making Tax Digital list the headline dates (April 2026, April 2027, April 2028) and leave you to work out which applies. The dates are simple. Working out which one is yours is the bit most people get wrong.
This article walks you through the answer in four questions. By the end you will know whether MTD has already started for you, will start in April 2027, will start in April 2028, or will not start under any currently announced wave.
For the broader context of what MTD is and what changes, the Making Tax Digital 2026 overview is the place to start.
The four questions
Answer these in order.
Question 1: Are you an individual filing Self Assessment, or do you trade through a limited company?
If you trade through a limited company for all of your business activity, MTD ITSA does not apply to you in any wave. Companies pay corporation tax, which is on a separate track. Your VAT-registered company is already in MTD VAT, and has been since April 2022. You can stop reading here; the answer is that MTD ITSA does not apply to you. Our guide to MTD for limited companies covers the detail.
If you are an individual filing a Self Assessment return (sole trader, freelancer, sub-contractor, landlord, partner in a partnership), continue to Question 2.
If you do both, a limited company plus personal property or self-employment, continue to Question 2 about the personal side. The company side is unaffected.
Question 2: What was your gross combined self-employment plus property income on your most recent Self Assessment return?
The threshold is gross income (turnover or rents), before any expenses, combined across self-employment and property.
Over £50,000? You are in the April 2026 cohort. MTD ITSA started for you on 6 April 2026. Continue to Question 4.
Between £30,000 and £50,000? You are likely in the April 2027 cohort. Continue to Question 3 to confirm.
Between £20,000 and £30,000? You are likely in the April 2028 cohort. Continue to Question 3 to confirm.
Under £20,000? No announced wave catches you. You are not in MTD ITSA at all under current rules.
Question 3: Will your gross combined income for the relevant test year still be above the threshold?
For the April 2027 cohort, the test is your 2025-26 return. For the April 2028 cohort, the test is your 2026-27 return.
If your income is rising, you are likely in the cohort indicated by Question 2. If your income is falling, you may drop below before the test. The test year matters more than the current year.
If you are confident your income will be above the threshold for the test year, treat the cohort indicated by Question 2 as your start date. Our guide to the MTD threshold covers what counts and what does not.
Question 4: Are you a sole trader, a landlord, or both?
The substantive obligations are the same in either case (digital records, four quarterly updates, a final declaration), but the records you need to keep are different.
Sole trader. Income and expense by trade. CIS-deducted invoices recorded gross. Capital allowances on equipment.
Landlord. Rent by property. Allowable expenses (mortgage interest, repairs, insurance, agent fees). Section 24 mortgage interest restriction at year end. Joint property splits.
Both. Two separate businesses within the same MTD account, each reporting separately each quarter, combined in the final declaration.
For sole traders specifically, see MTD for sole traders: complete guide. For landlords specifically, see MTD for landlords: complete guide.
The decision matrix
| Your gross combined income (last SA return) | Your start date |
|---|---|
| £50,000+ | 6 April 2026 (already started) |
| £30,000 to £50,000 | 6 April 2027 (subject to confirmation by the 2025-26 return) |
| £20,000 to £30,000 | 6 April 2028 (subject to confirmation by the 2026-27 return) |
| Under £20,000 | Not in MTD ITSA under current rules |
| Limited company income only | Not in MTD ITSA |
| PAYE, dividends or interest only | Not in MTD ITSA |
The April 2026 cohort: what to do now
If you are in this cohort, you are already in MTD ITSA. The first quarterly update was due by 7 August 2026 and the next is due by 7 November 2026. Our quarterly update checklist walks through the November submission, including what to do if the August one was missed or scrambled.
If you are not yet set up:
- Confirm your scope, using Question 2 above.
- Choose MTD-recognised software.
- Sign up for MTD ITSA at GOV.UK.
- Get your records up to date in software from 6 April 2026.
- File the Q1 update by 7 August 2026.
The April 2027 cohort: what to do now
You have roughly eight months. The work between now and April 2027:
- Confirm your 2025-26 income trajectory by autumn 2026.
- Choose software, and start using it before April so you are familiar by go-live.
- Sign up for MTD ITSA before 6 April 2027.
- Have your records ready in software from 6 April 2027.
- File the first quarterly update by 7 August 2027.
The £30,000 to £50,000 band is the largest of the three cohorts. More UK landlords and sole traders fall into this range than into either £50k+ or £20,000 to £30,000. Software is competitive at this scale, so do not panic-buy.
The April 2028 cohort: what to do now
You have roughly twenty months. There is some risk of slippage, but plan as if April 2028 is the date.
- Watch your 2026-27 income trajectory.
- Pick a software product twelve months before go-live so you have time to use it.
The most expensive mistake is leaving software selection until the last quarter before launch.
The “not in any cohort” group
If your income is below £20,000 from self-employment and property, no announced MTD ITSA wave applies to you. Your Self Assessment return continues as before.
If your income is only PAYE, pension, dividend or interest, MTD ITSA does not apply.
If you trade through a limited company and have no personal self-employment or property income, MTD ITSA does not apply, though MTD VAT may apply to the company.
The “depends on what happens next” group
If you are at or near a threshold, the test year matters more than the current year. A landlord at £29,000 of rents this year who buys a third BTL next year might cross £30,000 before the test for the April 2027 cohort. They are then in.
If you are near the line, the timing of cash receipts matters. We do not advise manipulating the threshold, but we do advise knowing your numbers in March and April when the tax year closes.
Frequently asked questions
Will Making Tax Digital apply to me? If you are a sole trader or an individual landlord, almost certainly at some point. It applies where your combined gross income from self-employment and property is over £50,000 (from April 2026), over £30,000 (from April 2027), or over £20,000 (from April 2028). It is gross income before expenses, and the two sources are added together. If you trade only through a limited company, MTD ITSA does not apply to you.
When should I start using Making Tax Digital? From the start of the tax year in which your threshold bites, not when you get around to it. HMRC tests you on your previous year’s Self Assessment return, so you usually know months in advance. If you are in the April 2026 cohort you should already be keeping digital records, and the next quarterly update is due 7 November 2026.
Do all self-employed people have to go digital? No. Only those above the income thresholds. Self-employed people with gross income under £20,000 are not in MTD ITSA under currently announced rules, and continue with a normal Self Assessment return.
Has Making Tax Digital been delayed? It has been delayed several times in the past, but the April 2026 start for the £50,000 cohort went ahead as announced. The April 2027 and April 2028 waves are the ones still ahead. Plan as if the announced dates hold.
I am a sole trader earning £45,000 with no other income. When does MTD start for me? April 2027, assuming your income stays around £45,000. You are above the £30k threshold but below £50k.
I am a landlord with three BTLs producing £55,000 in joint names with my spouse. When does MTD start? The default 50:50 split for married couples in joint names puts each spouse at £27,500. Each is below the £50k threshold for April 2026 but above the £30k threshold for April 2027. Both are likely in from April 2027.
I trade through a limited company. When does MTD start for me? MTD ITSA does not apply to your company. MTD for Corporation Tax has been mooted for years but no implementation date is set. MTD VAT applies if your company is VAT-registered.
I started self-employed in 2025-26. Am I in the April 2026 cohort? No, because HMRC bases the test on the 2024-25 return, which does not show your self-employment income. You may join later once HMRC has data.
My income is volatile. How do I know when I am in? Each cohort tests the prior year’s return. If your 2024-25 was above £50k, you are in for 2026-27 even if your current year drops below. Once in, you can apply to leave only after three consecutive years below the threshold.
Do I have to register if I am not in scope? No. MTD ITSA registration is for those above the threshold. If you are not in scope, your normal Self Assessment return continues as before.
Will the dates slip? Earlier MTD threshold dates have slipped. Plan as if announced dates hold; the political and administrative incentives are now strongly toward holding the dates.
Talk to us about your start date
We will tell you exactly which cohort you are in and what to do next. See our Making Tax Digital service for what we handle. The first conversation is free.
Contact us or call 028 9508 4138.