HMRC Mandates Digital Tax Records for 1.1 Million Taxpayers
HM Revenue and Customs will require 1.1 million sole traders and landlords with turnovers over £30,000 to use digital tax software by April 2027.
The HM Revenue and Customs announced that Making Tax Digital for Income Tax will become mandatory for approximately 1.1 million additional sole traders and landlords starting April 6, 2027. The mandate applies to individuals with an annual turnover exceeding £30,000, regardless of their actual profit.
Under the new requirements, affected taxpayers must maintain digital records and use compatible software to submit quarterly summaries of income and expenses to the agency, supplementing their annual tax returns. This expansion follows a previous mandate implemented in April 2026 for those earning over £50,000 and precedes a further threshold reduction to £20,000 scheduled for April 2028.
Craig Ogilvie, the Director of Making Tax Digital at HMRC, urged eligible taxpayers to sign up early to familiarize themselves with the system before the deadline. The agency noted that exemptions are available for individuals who are digitally excluded, provided they submit an application.
