10/08/2026
Making Tax Digital (MTD) for Income Tax is a UK government scheme requiring sole traders and landlords to keep digital records and send quarterly updates to HMRC using compatible software, replacing traditional annual tax returns.
Mandation begins in April 2026 for those with income over £50,000, and in April 2027 for those over £30,000.
Key Rollout Thresholds:
April 2026: Mandatory for sole traders and landlords with qualifying income over £50,000.
April 2027: Mandatory for individuals with qualifying income over £30,000.
April 2028: Mandatory for individuals with qualifying income over £20,000.
What You Need to Do:
Use Compatible Software: HMRC does not provide free software; you must use commercial, MTD-compatible accounting apps or bridging software.
Keep Digital Records: Daily business income and expenses must be tracked electronically.
Submit Quarterly Updates: Send summaries of business income and expenses to HMRC every three months.
Final Declaration: Submit a final year-end declaration and pay any tax due by 31 January the following year.
You can review official sign-up steps and rules on the GOV.UK Making Tax Digital Guide.
If you need help with any of this please let me know.
