Making Tax Digital for Income Tax is now a major change for many UK sole traders and landlords. Digital records and software-based reporting are becoming a normal part of tax compliance.
1. MTD Started From 6 April 2026
Sole traders and landlords with qualifying income above £50,000 need to use Making Tax Digital for Income Tax from 6 April 2026.
2. Digital Records Are Required
Businesses within MTD must use compatible software to create, store and correct digital records of income and expenses.
3. Quarterly Updates Matter
Eligible taxpayers need to send quarterly updates to HMRC through compatible software.
4. The Threshold Will Fall
The rollout continues in stages: qualifying income above £30,000 starts in April 2027, and above £20,000 starts in April 2028.
5. Choose Software Early
Businesses should check that their bookkeeping or accounting software supports MTD and that records are maintained correctly.
Conclusion
UK tax compliance is becoming increasingly digital. Getting the bookkeeping and software setup right can make MTD much easier to manage.
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Sources: HMRC/GOV.UK — Making Tax Digital for Income Tax guidance, updated September 2026.