If your gross self-employment and property income exceeded £30,000 in 2025/26, Making Tax Digital for Income Tax will usually apply from 6 April 2027, unless an exemption applies. The first phase showed why preparation matters: when it began in April 2026, only about a quarter of the 864,000 people in scope had registered.

Your Self Assessment return due by 31 January 2027 will determine whether you enter this phase. Our Making Tax Digital support can help you confirm your position, choose a workable process, and prepare before quarterly reporting begins.

For help with your own records, call us on 01322 250 001 and we will identify the next practical step.

Who must use Making Tax Digital for Income Tax in Kent from April 2027?

You will normally need MTD from 6 April 2027 if you are registered for Self Assessment, receive self-employment or property income, and your 2025/26 qualifying income exceeds £30,000.

The threshold uses gross income before expenses, not profit, and combines relevant sources. A sole trader with £24,000 turnover and £8,000 property income has £32,000 of qualifying income.

Employment income, dividends, pensions, and an individual partner’s share of partnership profit do not count. Some people are automatically exempt or may apply for exemption, including where digital exclusion applies.

How does MTD ITSA work for a sole trader in the UK in 2027?

Under MTD ITSA for a UK sole trader in 2027, you or your accountant will use compatible software to keep digital records and send summary updates to HMRC every three months.

These are not four complete tax returns. After year-end, you will make adjustments, add other taxable income, claim reliefs, and submit the annual return.

What counts as qualifying income for Making Tax Digital Self Assessment in Kent?

For Making Tax Digital Self Assessment in Kent, the point that catches people most often is the difference between income and profit. HMRC looks at turnover from self-employment and gross property income and can combine several trades or properties.

Check 2025/26 carefully if you have a side business, rental income, or a ceased source. Some ceased income can still count. HMRC may write, but checking remains your responsibility.

We can help you review the relevant income sources and submit the return that determines your MTD start date.

What do quarterly tax updates mean for an HMRC sole trader?

The standard deadlines for quarterly tax updates to HMRC for a sole trader (for someone entering MTD on 6 April 2027) will be:

• 7 August 2027

• 7 November 2027

• 7 February 2028

• 7 May 2028

The annual tax return for 2027/28 will be due by 31 January 2029. Current rules use a points-based approach for repeated late submissions, so a steady routine is more useful than a quarterly rush.

How to choose self-employed MTD software in Kent before 2027

The right self-employed MTD software in Kent should suit how you work. A mobile tradesperson may need receipt capture, while a consultant may value invoicing and bank feeds. Spreadsheet users may prefer bridging software.

Check that the product can:

• Create and store digital records

• Support every relevant income source

• Submit quarterly updates and the annual return

• Connect with existing systems and

• Provide access for your accountant.

HMRC lists recognised products but does not recommend one. Test the workflow, not just the features.

How to prepare for MTD Income Tax compliance in the UK

Good MTD Income Tax compliance in the UK starts before April 2027.

1. Confirm whether the threshold applies

Review gross self-employment and property income for 2025/26. Do not use profit after expenses.

2. Clean up record-keeping

Decide how invoices, receipts, mileage, and cash payments will enter the digital record. Separating business and personal transactions can make reviews easier.

3. Test the system early

A trial exposes missing bank feeds, unclear categories, and duplicate entries while there is time to correct them. Regular bookkeeping support can make each update a review of records already kept current.

4. Agree responsibilities

Confirm who will maintain records, review transactions, send updates, and complete the annual return.

Prepare once, then keep the process simple

MTD changes the reporting rhythm, not how you run your business. Confirm your start date, choose suitable software, and keep records current.

Adams Accountancy has supported businesses and individuals since 2015 from its Bexley offices. As chartered accountants serving Kent, we combine local support with practical digital accounting experience.

Call 01322 250 001 or email info@adams-accountancy.co.uk to prepare for April 2027.

Frequently asked questions

Will all self-employed people enter MTD in April 2027?

No. The 2027 phase generally applies when qualifying income for 2025/26 is more than £30,000, unless an exemption applies.

Is the £30,000 threshold based on profit?

No. HMRC uses gross qualifying income before business expenses.

Can I keep using spreadsheets?

Potentially. They must connect to compatible software that can make the required submissions.

Do quarterly updates replace the annual tax return?

No. They are summaries. You will still submit an annual tax return through compatible software.

Can an accountant manage MTD for me?

Yes. An authorised accountant can help with software, digital records, quarterly updates, and the annual return.