Making Tax Digital for Income Tax

Making Tax Digital for Income Tax changes how many sole traders and landlords report their income to HMRC. If it applies to you, you will need to keep digital records and send updates to HMRC using compatible software. We can help you understand whether it affects you and get set up in good time.

Who it affects and when

Making Tax Digital for Income Tax applies to sole traders and landlords registered for Self Assessment whose qualifying income from self-employment and property is over a set threshold. According to HMRC guidance (checked 14 October 2026):

• From 6 April 2026 – if your qualifying income was over £50,000 in the 2024 to 2025 tax year
• From 6 April 2027 – if your qualifying income is over £30,000 in the 2025 to 2026 tax year
• From 6 April 2028 – if your qualifying income is over £20,000 in the 2026 to 2027 tax year

Qualifying income is your total income from self-employment and property before expenses. Partnerships will be brought in at a later date, which HMRC has not yet set. Some people may be exempt. HMRC writes to people it expects to be affected, but it is still your responsibility to check.

Source: GOV.UK, "Find out if and when you need to use Making Tax Digital for Income Tax".

What changes

• Keep digital records of your income and expenses
• Send quarterly updates to HMRC using compatible software
• Still submit a tax return by 31 January after the end of the tax year

How we can help

• Check whether and when Making Tax Digital for Income Tax applies to you
• Help you choose and set up compatible software
• Help you keep your records in order through the year
• Submit your quarterly updates and tax return for you as your agent

Check where you stand

If you are a sole trader or landlord and are unsure whether this affects you, get in touch and we will help you check.