Making Tax Digital for Income Tax changes how qualifying sole traders and landlords keep digital records and send updates to HMRC. This page gives a starting point, not personalised tax advice.
Reviewed 29 July 2026. Rules and dates can change. Check the current HMRC guidance on GOV.UK before acting.
Who entered the first phase?
From 6 April 2026, MTD for Income Tax became mandatory for qualifying sole traders and landlords whose total annual income from self-employment and property exceeded £50,000, subject to HMRC’s detailed rules and exemptions. Further groups are due to enter in later phases.
What changes in practice?
- Qualifying income and expenses must be kept in compatible digital records
- Quarterly updates are sent using compatible software
- A final tax return and normal payment obligations still remain
- The right setup depends on income sources, software and circumstances
Questions to ask an accountant
- Have you supported clients through the 2026 introduction?
- Which compatible software do you use and what will it cost?
- Who keeps the records and sends each update?
- What checks are included before quarterly submissions?
- How will the MTD work connect with my annual tax return?
- What happens if records are late or incomplete?
Primary source: HMRC — Sign up for Making Tax Digital for Income Tax. General information only.