Making Tax Digital for Income Tax from April 2026 — what do I actually need to do?

Don't panic — you're asking the right questions well in advance. Yes, from 6 April 2026, sole traders with qualifying income over £50,000 must use Making Tax Digital for Income Tax, which means keeping digital records and sending quarterly updates to HMRC using compatible software, plus your usual tax return and payment by 31 January. So it's quarterly updates rather than four tax returns — the updates are summaries, not full calculations. You will need software that works with MTD for Income Tax, as HMRC doesn't provide its own — there's a list of recognised software on GOV.UK, including affordable options for small sellers. The first step is to check your qualifying income and get the software in place, then sign up — and from September 2026 HMRC will start signing up anyone who hasn't done it themselves.