Making Tax Digital for Income Tax

Tax is Changing in April 2026 – Act Now

Making Tax Digital for Income Tax (MTD) is coming in from April 2026. This change represents a significant shift in how income tax is reported and managed. Early awareness and preparation will help ensure a smooth transition, so members should sign up early to prepare. This will give members extra time to choose the right software, understand the new processes, and build confidence before the changes take effect.

What’s Changing?

From April 2026, MTD will require individuals to keep digital records and submit quarterly updates using software compatible with MTD. This is the biggest change to personal tax since Self Assessment began.

Who is Affected?

  • Sole traders and landlords with qualifying income over:
    • £50,000 from April 2026
    • £30,000 from April 2027
    • £20,000 from April 2028

What is Qualifying Income?

Qualifying income is the total income you get in a tax year from self-employment and property before deducting any expenses or tax. If your combined income from these sources meets the threshold for the 2024–2025 tax year, you may need to use Making Tax Digital for Income Tax from April 2026.

Individuals are encouraged to check their income on their 2024-2025 tax return to see if they are required to use Making Tax Digital for Income Tax from April 2026: Work out your qualifying income for Making Tax Digital for Income Tax – GOV.UK.

Where to find more information: