Making Tax Digital (MTD) for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying income above \u00a350,000. Affected taxpayers need to keep digital records and send quarterly updates to HMRC using compatible software.<\/p>\n
From September 2026, HMRC is beginning to sign up taxpayers who are required to use MTD for Income Tax but have not yet signed up. HMRC is using information from existing Self Assessment returns to identify people who may be affected.<\/p>\n
For 2026\/27, the first group generally includes individuals with qualifying income above \u00a350,000 in their 2024\/25 tax return from self-employment, property income, or a combination of both. Qualifying income is based on gross income before expenses.<\/p>\n
Affected taxpayers need to keep digital records and send quarterly updates covering their business and\/or property income and expenses. Quarterly updates are not tax returns: the final Self Assessment tax return is still required.<\/p>\n
During 2026\/27, HMRC has confirmed that no penalty points will be issued for late quarterly updates. Normal penalties for late Self Assessment returns and tax payments continue to apply.<\/p>\n
MTD will extend to taxpayers with qualifying income above \u00a330,000 from April 2027. Sole traders and landlords who may be affected should check their position and prepare early.<\/p>\n
If you are a sole trader or landlord and are unsure whether MTD for Income Tax applies to you, or you need help getting ready, our advisers can help. We can assist with checking your MTD requirements, understanding your obligations, digital record keeping and preparing for quarterly reporting.<\/p>","protected":false},"excerpt":{"rendered":"
What is changing? Making Tax Digital (MTD) for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying income above \u00a350,000. Affected taxpayers need to keep digital records and send quarterly updates to HMRC using compatible software. Why is September 2026 important? From September 2026, HMRC is beginning to sign…<\/p>","protected":false},"author":2,"featured_media":221994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,68,5,7],"tags":[],"class_list":["post-221999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-news","category-featured","category-hmrc-tax","category-other","category-useful-articles","category-2","category-3","category-68","category-5","category-7","description-off"],"yoast_head":"\n