Overview

• Making Tax Digital for Income Tax will require sole traders and landlords earning over £50,000 to maintain digital records and submit quarterly updates starting April 2026.
• The income threshold for mandatory compliance will drop to £30,000 in April 2027 and to £20,000 in April 2028, expanding the program to nearly 2 million taxpayers by 2028.
• HMRC estimates that 780,000 individuals will be affected in the first phase, with an additional 970,000 joining in the second phase in 2027.
• The initiative aims to modernize the tax system, reduce errors, and streamline record-keeping, building on the success of Making Tax Digital for VAT.
• Eligible taxpayers are encouraged to join HMRC's testing program now to familiarize themselves with the new system and access dedicated support ahead of the mandatory rollout.