Making Tax Digital for Income Tax is now live. From 6 April 2026, sole traders and landlords registered for Self Assessment with qualifying self-employment or property income over £50,000 need to keep digital records and submit quarterly updates using compatible software, plus a final declaration after the tax year ends.

 

The rollout continues: from April 2027 the threshold drops to £30,000 of qualifying income, and from April 2028 to £20,000 — so more small businesses will be brought in over the next couple of years.

 

If you are near the threshold, it is worth checking which tax year's income counts towards it, and getting software in place early. You also need to be registered for Self Assessment and have submitted a return in the last two years before you can sign up.

 

The official guidance, including who is exempt, is on GOV.UK: https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax