Making Tax Digital for tradespeople: what changes on 6 April 2027Making Tax Digital for tradespeople: what changes on 6 April 2027

Making Tax Digital for tradespeople reaches a lot more sole traders on 6 April 2027. If your turnover in the 2025 to 2026 tax year was above £30,000, you will need to keep digital records and send HMRC quarterly updates from that date. This is what the rules say, what changes for a working tradesperson, and what to do before April.

What has been announced

On 5 October 2026, HMRC urged sole traders and landlords earning more than £30,000 to act now. It says about 1,077,000 more people will have to use Making Tax Digital for Income Tax from 6 April 2027, on top of those already in the scheme. Turnover is counted before tax allowances or expenses are taken off.

GOV.UK’s check when to sign up page sets out the three steps:

• Income above £50,000 in the 2024 to 2025 tax year: you should have started on 6 April 2026.
• Income above £30,000 in the 2025 to 2026 tax year: you start on 6 April 2027.
• Income above £20,000 in the 2026 to 2027 tax year: you start on 6 April 2028.

HMRC says the first group’s next quarterly update was due on 7 November. That is a useful preview of what the second group will be doing a year from now.

What changes for a sole trader

From your start date you do three things differently, according to HMRC:

1. Keep your income and expenses as digital records, not on paper or in a notebook.
2. Use HMRC-recognised software to send quarterly updates of that income and expenses.
3. Complete your tax return as usual.

HMRC describes the quarterly updates as short summaries, not extra tax returns. GOV.UK’s guide to using Making Tax Digital for Income Tax has separate sections on creating digital records, sending quarterly updates and submitting the return, so read the one you need before your first deadline.

You also have to be registered for Self Assessment, and you need to choose compatible software or have an agent act for you. If you use an accountant, ask them now whether they will send the updates for you or whether you will.

Why it matters more for trades

Most of the numbers HMRC wants come from the day job. The income is the quotes you win and the invoices you send. The expenses are materials, fuel, mileage and subcontractors. If those live in a glovebox, a spreadsheet and three different message threads, the quarterly update becomes a chore at the worst time of the quarter.

The practical answer is to record each number once, when it happens. A job that goes from quote to invoice in one system gives you the income side. A receipt photographed and attached to the job gives you the expense side, and it shows what each job really cost.

What to record, and when

Digital records do not have to be complicated. For a tradesperson they come down to a handful of habits that take a minute each:

• Raise an invoice the day a job is signed off, so income is dated and recorded the same week.
• Photograph each receipt on the day and attach it to the job it belongs to.
• Log business mileage as you go, with the start and end address, not from memory at the end of the quarter.
• Note payments to subcontractors against the job they worked on.
• Spend ten minutes at the end of each month checking that everything is in.

Do this from now and the first quarterly update is a summary of numbers you already trust. Leave it until April and you will be rebuilding a quarter from bank statements.

A simple checklist before April 2027

• Work out your 2025 to 2026 turnover before expenses. If it is above £30,000, you are in. If it is above £20,000 for 2026 to 2027, you will be in a year later.
• Ask your accountant who sends the quarterly updates, and which software they use.
• Move quotes, invoices and expenses into one place now, not in the week your first update is due.
• Keep receipts attached to the job they belong to, so costs are easy to find.
• Check that the software that sends your updates is on HMRC’s list of recognised software.

jobmate Lite is built for sole traders and the self-employed, including those preparing for Making Tax Digital. It keeps quotes, jobs, invoices and expenses together, with mileage and photographed receipts attached to the job, and it integrates with Xero for accounts. Whatever you use to send your updates, check it against HMRC’s list first. You can read how expenses and job costing work in jobmate, or see how quotes and invoices connect.

Making Tax Digital for tradespeople: common questions

Do I need to join if I earn less than £30,000?

Not from April 2027. GOV.UK’s dates mean that if your income was between £20,000 and £30,000, the next step is April 2028, based on your 2026 to 2027 income. GOV.UK’s page gives no start date for anyone below £20,000.

What counts as income for the £30,000 test?

HMRC’s press release says turnover, counted before tax allowances or expenses. The GOV.UK page calls it qualifying income and links to its own guidance on how it is worked out, so check that page for your own mix of income.

What is a quarterly update?

A short summary of your income and expenses for the quarter, sent through your software. HMRC says they are not extra tax returns.

Do I need new software?

You need HMRC-recognised software to send the quarterly updates, or an agent who has it. Ask your accountant whether your current records will work with it, or whether it is easier to start fresh.

Next step

If you are a sole trader and want to see quotes, jobs, invoices and expenses in one place before April, Book a demo.