MTD Income Tax Threshold Reduction to £20k from April 2028

UK HMRC Publications & Guidance

Published March 24th, 2026

Detected March 25th, 2026

Summary

HM Revenue & Customs has announced a reduction in the Making Tax Digital for Income Tax Self Assessment mandation threshold from £30,000 to £20,000, effective from April 2028. This change will extend digital record-keeping and quarterly submission requirements to a wider group of self-employed individuals and landlords.

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What changed

HM Revenue & Customs (HMRC) has published guidance detailing the reduction of the Making Tax Digital (MTD) for Income Tax Self Assessment mandation threshold from £30,000 to £20,000. This policy change, set to take effect in April 2028, will bring more self-employed individuals and landlords under the digital record-keeping and quarterly submission obligations of MTD.

Affected individuals and businesses should prepare for the lower threshold by understanding the MTD requirements and ensuring their record-keeping systems are compliant. While the effective date is April 2028, proactive planning is advised to manage the transition smoothly. Non-compliance with MTD rules can lead to penalties.

What to do next

Review current income thresholds for MTD applicability.
Assess record-keeping systems for compliance with MTD requirements.
Plan for digital submission of quarterly tax information by April 2028.

Penalties

Penalties may apply for non-compliance with MTD rules.

Source document (simplified)

Policy paper

Making Tax Digital for Income Tax Self Assessment — reducing the mandation threshold from £30,000 to £20,000 from April 2028

This tax information and impact note is about the reduction of the Making Tax Digital for Income Tax Self Assessment mandation threshold from £30,000 to £20,000, from April 2028.

From: HM Revenue & Customs Published 24 March 2026 Get emails about this page

Documents

Reduction of the mandation threshold from £30,000 to £20,000 from April 2028

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Details

This measure reduces the Making Tax Digital (MTD) for Income Tax mandation threshold from £30,000 to £20,000, extending digital record‑keeping and quarterly submission obligations to additional self‑employed individuals and landlords.