Overview

• From April 6, 2026, sole traders and landlords with gross income above £50,000 will be required to use Making Tax Digital for Income Tax
• Obligated taxpayers must keep digital records, use MTD-compatible software and submit quarterly summaries instead of a single annual return
• HMRC estimates about 780,000 individuals will join at launch, with a further 970,000 set to join in April 2027
• The qualifying income threshold will fall to £30,000 from April 2027 and to £20,000 from April 2028 to broaden compliance
• HMRC is urging eligible taxpayers to join its voluntary testing programme now to familiarise themselves with the new reporting system