Getting ready for MTD in April 2027: a checklist for sole traders
18 October 2026 · 6 min read · Checked against GOV.UK 16 October 2026
Your timeline
| Date | What happens |
|---|---|
| By 31 January 2027 | File your 2025 to 2026 tax return. This is the one that decides. |
| 6 April 2027 | MTD starts. Keep digital records from today. |
| 7 August 2027 | First quarterly update due (6 April to 5 July). |
| 31 January 2028 | Your 2026 to 2027 tax return, filed the usual way. |
| 7 May 2028 | Fourth update for 2027 to 2028. |
| 31 January 2029 | Your first year-end under MTD. |
The checklist
- 1. Check your qualifying income. Add up your 2025 to 2026 self-employment and rental turnover, before expenses. Our MTD checker does it in seconds. Close to £30,000? Check the exact figure on your return. See earning under £30,000.
- 2. File your 2025 to 2026 return early. The sooner it's in, the sooner you know for certain, and HMRC can write to you about MTD.
- 3. Make sure you can sign in to HMRC online. You'll need your Government Gateway or GOV.UK One Login details to sign up and to connect software.
- 4. Separate work and personal money. A separate account isn't required, but using one account for work makes digital records far simpler.
- 5. Choose your software. It must be able to send updates to HMRC. HMRC's software finder (opens in a new tab) lists the products it recognises. Look for automatic bank feeds, receipt capture and a clear price.
- 6. Sign up for MTD. Sign up on GOV.UK (opens in a new tab) before 6 April 2027, unless HMRC has written to say it's signed you up (opens in a new tab).
- 7. Start digital records on 6 April 2027. Every sale and every cost from that day goes into your software. Snap receipts as you go rather than at the end.
- 8. Diary the deadlines. 7 August, 7 November, 7 February and 7 May. There's no penalty-free first year for people joining in 2027. See MTD penalties.
What isn't changing
You still pay tax on 31 January and 31 July. You still finalise each year by 31 January. And your 2026 to 2027 tax return is filed the way you file now. MTD changes how you keep records and report during the year, not how much tax you owe.
For the bigger picture, read our plain-English guide to Making Tax Digital.