From April 2026, one of the biggest changes in recent years is coming into effect: Making Tax Digital (MTD) for Income Tax.
If you’re a sole trader or landlord, this will fundamentally change how you report your income.
Who does this apply to?
You’ll need to comply if your total business or property income is:
- Over £50,000 from April 2026
- Over £30,000 from April 2027
What’s changing?
Instead of one annual Self Assessment, you will:
- Keep digital records
- Submit quarterly updates
- File a final year-end declaration
These updates are not extra tax bills, just more frequent reporting.
What should you do now?
- Start using cloud accounting software
- Get comfortable with digital record keeping
- Speak to your accountant early
Why it matters
HMRC’s goal is to reduce errors and improve accuracy—but for many businesses, it means more admin if you’re not prepared.