Sole traders and landlords with an income over £50,000 will be required to use Making Tax Digital for Income Tax from 6 April 2026.
Making Tax Digital for Income Tax goes live on Monday 6 April 2026. You can prepare now to get ready for the new requirement to keep digital records and submit quarterly updates on your income and expenses.
What does Making Tax Digital for Income Tax mean?
Making Tax Digital for Income Tax means that eligible individuals will need to keep digital records and report their income to HM Revenue & Customs (HMRC).
Digital records
By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time, allowing them to spend more time focusing on their business activities.
Quarterly updates
Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting, and help businesses stay on top of their finances and avoid the last-minute rush.
Who is required to use Making Tax Digital for Income Tax?
There will be a phased-in approach to Making Tax Digital for Income Tax.
- From April 2026, individuals with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software, and submit quarterly summaries of their income and expenses to HMRC.
- From April 2027, those with qualifying income above £30,000 will also be required to use MTD for Income Tax.
- From April 2028, the threshold will then decrease to £20,000.
Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.
What do I need to do now?
HMRC is urging eligible customers to sign up to a testing programme and start preparing for Making Tax Digital for Income Tax now.
Tax agents and advisers can also register their clients for the testing programme.
Further information
You can read further details on Making Tax Digital for Income Tax.
First published 24 April 2025
