Sole traders and landlords urged to prepare for Making Tax Digital for Income now

While Making Tax Digital (MTD) for Income Tax doesn’t launch until next year, sole traders and landlords are being urged to act now to better prepare themselves for the imminent changes.

On 6^th April 2026, sole traders and landlords who take home more £50,000 will be required to use MTD for Income Tax.

This will involve keeping digital records and sending quarterly updates throughout the year. The government says this will spread the workload more evenly over the year, bringing the tax system closer to real-time reporting and helping businesses to stay on top of their finances and avoid the last-minute rush.

Those who are eligible are being urged to sign up for the testing programme now in order to better prepare themselves for these changes. There are no penalties for late updates during this period, making it a good opportunity to get used to the new process without the risk.

Craig Ogilvie, HMRC’s Director of Making Tax Digital, said, “MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.

“By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.”

James Murray MP, Exchequer Secretary to the Treasury, added, “MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.

“By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.

“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”

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