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Guide · Internal
MTD ITSA £30,000 Threshold From April 2027
The wave after the first one: smaller clients, weaker records, and far more of them.
Built by a practising Chartered Accountant · Unlimited users · 60-day free trial · Last updated 27 September 2026
Quick answer
The £30,000 qualifying income threshold brings a much larger group of smaller sole traders and landlords into MTD for Income Tax from April 2027. These clients typically keep the weakest records, so practices should start segmenting and converting them now. Always confirm the current thresholds and dates on GOV.UK.
Why is this wave harder than the first?
Because the clients are smaller, more numerous and least likely to be on bookkeeping software already.
The higher thresholds caught clients who mostly had software and a bookkeeper. A £30,000 gross-income threshold reaches part-time traders, single-property landlords and side businesses. There are many more of them per firm, their records are often paper, and their fees are the smallest — which makes efficiency and automation the only way the work pays.
What should firms do now?
Count the clients affected, decide which you want to keep, standardise a low-touch service, and start converting records early.
Run the qualifying income test at £30,000 across your whole self assessment base and see the number. That figure decides everything else: staffing, pricing, whether you need a productised quarterly service, and whether some clients need moving on. Confirm the threshold and start date on GOV.UK as the rules are still being phased in.
MTD ITSA £30,000 Threshold From April 2027: step by step
- 1
Count the wave
Run the qualifying income test at the new threshold across all clients.
- 2
Decide who you keep
Identify clients whose fee cannot support quarterly work.
- 3
Productise the service
Build one low-touch quarterly service with fixed stages.
- 4
Set a standard price
Price the productised service rather than quoting each client.
- 5
Start records conversion
Move paper clients onto software well in advance.
- 6
Automate the chasing
Rely on scheduled reminders rather than staff time.
See it working with your own clients
A 30-minute walkthrough using your services, deadlines and templates.
How do you do it in Remindoo?
- Tag the 2027 group. Flag every client the new threshold brings into scope.
- Build a light service. Create a simple quarterly service with minimal stages.
- Bulk-assign it. Apply the service across the whole tagged group.
- Automate requests. Schedule records requests and chasers for the group.
- Collect in the portal. Have clients upload records rather than email them.
- Watch the margin. Use recorded time to check the fixed fee still works.
Custom fields and data tokens
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See featureService templates
Repeatable structures for every service.
See featureRecurring tasks
Repeat work is created automatically on schedule.
See featureAutomated reminders
Timely prompts before work becomes urgent.
See featureClient portal and document sharing
Share requests and documents securely, not by email.
See featureWhat are the common mistakes?
- Assuming the dates will slip again
- Pricing each small client individually
- Running the same high-touch process as for large clients
- Leaving paper clients until the final year
- Not counting how many clients are affected
“Automation saves time and no follow-up is missed.”
Frequently asked questions
When does the £30,000 threshold apply?
It is scheduled for April 2027 as part of the phased rollout. Confirm the current position on GOV.UK, as the timetable has been revised before.
Is the threshold based on profit?
No. It uses qualifying income — gross self-employment and property income combined, before expenses.
Will there be a lower threshold later?
A further reduction has been discussed as part of the phased approach. Check GOV.UK for the confirmed position.
How do I make small clients profitable?
Standardise the service, fix the price, automate the chasing, and keep the number of manual touches per client very low.
Should I let some clients go?
Some firms do where the fee cannot support quarterly work. A documented disengagement process keeps that clean.
Does Remindoo file these updates?
No. Remindoo manages the workflow, chasing and deadlines; filing happens in your MTD-compatible software.
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Sources
Last updated 27 September 2026. General guidance, not regulatory advice.
Why recording every task matters in an accountancy practice
Accounting firms run on deadlines: VAT returns, payroll, confirmation statements, accounts and Self Assessment. Recording every job as a task, with an owner and a date, is the simplest way to make sure nothing is missed.
Avoid penalties
HMRC and Companies House charge penalties for late filing. A task for every deadline, with an internal date before it, gives the team a buffer.
Nothing depends on memory
Recorded tasks mean work continues when someone is off sick, on leave or has left the firm.
Consistent quality
Subtask checklists make every job follow the same steps and reviews, whoever does the work.
Visibility for managers
Filters by owner, status and deadline show at a glance what is late, what is due and who needs help.
Practical tips from UK practice
- Set an internal deadline two to four weeks before every statutory deadline.
- Use recurring tasks for repeat work such as VAT, payroll and bookkeeping.
- Break larger jobs into subtasks, including a review step.
- Comment on the task instead of by email, so the history stays with the work.
Related Remindoo features
Written and reviewed by Waqas Sagar ACA FCCA FMAAT, Chartered Accountant with 18+ years in practice. Founder and MD of Accotax, an ICAEW, ACCA and AAT regulated London practice that has served over 5,000 clients, and founder of Remindoo. Guidance is general; check current GOV.UK and professional body guidance for your firm.
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