Overview
- From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates using compatible software in the UK.
- HMRC says the quarterly submissions are simple software‑generated summaries, do not add extra tax returns, and any errors can be corrected in the next update.
- More than 2,000 updates have been submitted in the testing programme with positive feedback, and participants get access to a dedicated support team.
- Free and paid MTD‑compatible tools are available, including options that link to spreadsheets and provide real‑time tax estimates to aid cash‑flow planning.
- HMRC estimates about 780,000 people will be brought in from April 2026 with a further 970,000 due from April 2027, as new research suggests only three in ten sole traders feel prepared.