Making Tax Digital for Income Tax to launch April 2026 for sole traders and landlords

There is less than a year before sole traders and landlords with qualifying income over £50,000 will be required to keep digital records to report their earnings to HMRC.

Making Tax Digital (MTD) for Income Tax will launch on 6th April 2026, and aims to help taxpayers save time gathering information when submitting their returns. A shift to quarterly updates will also spread the workload throughout the year, and help businesses avoid a large tax bill at the end of the year by making more manageable, smaller payments.

To comply with the changes, 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. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.

Lower earners will also be transitioned to digital record keeping in the following years. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028.

James Murray MP, Exchequer Secretary to the Treasury, said:

“MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.

“By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.”

Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:

“MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.

“By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.“

HMRC is urging eligible customers to sign up to a testing programme on GOV.UK and start preparing now for Making Tax Digital. Agents can also register their clients via GOV.UK.