Your Ecommerce Accountant : MTD Rollout Expands to 2.9 Million Sole Traders and Landlords by 2028

Making Tax Digital for Income Tax is set to encompass approximately 2.9 million UK sole traders and landlords by April 2028 as the qualifying-income threshold falls in stages, according to an analysis published by Your Ecommerce Accountant. HMRC data shows 864,000 people fall into the first £50,000-plus MTD income band, with more than two million additional sole traders and landlords entering as the threshold falls in 2027 and 2028. HMRC data identifies 864,000 individuals with qualifying self-employment or property income above £50,000, the first group brought into mandatory MTD for Income Tax from 6 April 2026. A further 1.077 million people fall within the £30,000 to £50,000 band scheduled to enter from April 2027, followed by another 975,000 with income between £20,000 and £30,000 from April 2028. Together, the three groups represent roughly 2.9 million people based on HMRC's 2023-24 business-population data. The change affects sole traders across industries, including people selling through Shopify, Amazon, Etsy and eBay. MTD eligibility isn't determined by the platform a business uses. Instead, it depends on qualifying gross income from self-employment and property. MTD also involves more than submitting an annual tax return online. Those within the scheme must maintain digital records and submit quarterly updates through compatible software. Before the first mandatory phase, HMRC data showed that 63% of the £50,000-plus population used commercial software to submit their 2023-24 Self Assessment return. That figure provides useful context, but it isn't a measure of MTD readiness. 864,000 Entered the First MTD Phase The first mandatory stage of MTD for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income above £50,000. HMRC estimates that 864,000 individuals fall within this income band based on 2023-24 tax data. While substantial, that first group accounts for less than one-third of the approximately 2.9 million people expected to fall within the eventual £20,000-plus threshold. For ecommerce businesses, the relevant figure is qualifying income rather than profit from a particular marketplace. Someone trading across Shopify, Amazon and Etsy doesn't assess each platform independently for MTD purposes. Gross income from applicable self-employment and property sources is considered together. That can be particularly relevant for online businesses whose transactions are spread across several marketplaces, storefronts and payment processors. The underlying tax rules are the same as for other sole traders, but keeping records across several channels can make digital bookkeeping a more practical consideration. The April 2026 phase is already live. Businesses in the £50,000-plus group are now operating within the first mandatory tax year rather than preparing for a future introduction. More Than Two Million More Enter by 2028 The rollout expands considerably over the next two tax years. HMRC estimates that 1.077 million people have qualifying income between £30,000 and £50,000. That group is scheduled to become subject to MTD for Income Tax from 6 April 2027. Another 975,000 individuals fall into the £20,000 to £30,000 band scheduled to enter from April 2028. Combined with the first phase, these groups total approximately 2.916 million people, commonly rounded to 2.9 million. The staged timetable means most of the eventual MTD population hadn't yet reached mandatory participation as of August 2026. More than two million additional sole traders and landlords fall into the two income bands due to enter during 2027 and 2028. For smaller ecommerce businesses and creators, the later stages bring the system closer to businesses that may have started as side ventures before growing beyond the qualifying-income threshold. However, HMRC's figures cover self-employed people and landlords nationall.