£30,000 turnover is the most dangerous number in UK small business right now.
If you’re a sole trader or landlord sitting at £18k… £22k… £26k…this isn’t a “future you” problem.
From April 2027, once you cross £30,000, you will be legally required to follow Making Tax Digital for Income Tax with HM Revenue and Customs.
Not next year’s accounts.
Not when you get round to it.
From that point on, the way you run your books must already be digital.
Here’s what most people don’t realise…
👉 It doesn’t start when you hit the threshold.
👉 It starts when HMRC expects your systems to already be working.
The real rollout:
• April 2026 – over £50,000
• April 2027 – over £30,000
If you’re aiming to grow, £30k is not far away.
And this is where small businesses get caught out.
This is not “submit your tax return online”.
You’ll be expected to:
- keep proper digital records
- send quarterly updates
- use HMRC-recognised software
- and keep your figures accurate all year, not just at year end
Trying to switch at the point it becomes mandatory is what creates:
messy data, missing expenses, unreconciled banks and panic.
Starting early removes all of that.
I help small UK businesses who are approaching the £30k mark by putting the right systems in place now using Xero.
Specifically:
- setting up your bookkeeping properly
- tracking and coding expenses correctly
- reconciling your bank accounts so the numbers actually match
- keeping your records clean and ready for quarterly reporting
If you expect your business to grow past £30,000, the easiest version of Making Tax Digital is the one you prepare for before you’re forced to.
My name is Sarah Rose and as a Bilingual Virtual Assistant, I support solopreneurs and business owners by offering bookkeeping, HR and translation solutions accompanied with virtual services designed to optimise their operations and increase their productivity.
hello@sarahroseVA.com
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