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Making Tax Digital Exemptions Are Shrinking

 

The Current Exemption Rules

If your gross income is under £50,000, Making Tax Digital isn't mandatory yet.

Self-employed sole traders and landlords below this threshold are still exempt from the digital reporting requirements.

The HMRC Roadmap

The exemption window is narrowing on a fixed schedule:

Now: Exempt if under £50,000
April 2027: Exempt if under £30,000
April 2028: Exempt if under £20,000

If your combined self-employment and property turnover falls anywhere in these brackets, you'll eventually fall under Making Tax Digital.

Planning Ahead Matters

You're not forced into compliance today. But the transition is coming.

Smart businesses don't wait until the last moment. They prepare 6-12 months early—choosing software, testing processes, training teams.

Know Your Specific Timeline

Where does your business sit? Combined turnover of £35,000? You're exempt now, but April 2027 changes everything.

£22,000? You've got until April 2028—but planning should start now.

Plan Your Transition

Read our Making Tax Digital roadmap: https://artifinaccountants.co.uk/mtd-registration-guide-how-uk-self-employed-and-limited-companies-can-sign-up/

Watch our timeline explainer: https://www.instagram.com/reels/Da5plb8kQ-X/

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