Making Tax Digital for Income Tax – Less than two months to go

There are now less than two months until sole traders and landlords with turnover above £50,000 will need to use Making Tax Digital (MTD) for Income Tax from April 2026.

HMRC will be looking at the 2024/2025 tax return to assess if individuals need to use MTD for Income Tax from April 2026.
If affected, it is important to prepare for the changes now. https://makingtaxdigital.campaign.gov.uk/. Understand more about the new process, how to choose compatible software and how to sign up: HMRC Making Tax Digital for Income Tax.

What’s changing?
Individuals need to keep digital records and submit quarterly updates using software compatible with MTD. From April 2026, self-employed/sole traders and landlords with turnover above £50,000 will need to start using it.

MTD will then be rolled out to these individuals with turnover above £30,000 from April 2027 and £20,000 from April 2028.

What is compatible MTD Software?
There are two different kinds of software. The software you choose depends on your individual circumstances.

• Software that creates digital records

This might be right for you if you want one software product that will meet all the requirements, or if you have more complex tax affairs.

• Software that connects to your records (bridging software)

This might be right for you if you have less complicated tax affairs, want to keep using your current non-MTD compatible accounting software, or want to keep your digital records on a spreadsheet.

You can even use a combination of different software, if that works better for you.

Depending on your individual requirements, there are both free and paid software options available. Some software includes additional features like built-in reminders, or phone camera receipt scanning – it’s up to you which you’d prefer.

Visit choosing the right software or use the software finder tool  to find compatible software that meets your needs.

Where to find more information:
• Check out Making Tax Digital for Income Tax for sole traders and landlords for a step by step on how to get ready for Making Tax Digital for Income Tax, including signing up to the service.

• Check MTD for Income Tax dates you need to know for a clear timeline of start dates, quarterly update deadlines, and self-assessment tax return deadlines.

• For further information and support, visit Help and Support for Making Tax Digital including webinars, videos, and support content for taxpayers, businesses and agents.