Sole traders and landlords with an income over £50,000 have been warned that
there is less than a year before they will be required to use Making Tax Digital
for Income Tax (MTD for IT).
HMRC says the launch of MTD for IT on 6 April 2026 will mark a significant and
time-saving change in how these individuals will need to keep digital records
and report their income to the tax authority.
HMRC says that by keeping digital records throughout the year, sole traders and
landlords can save hours previously spent gathering information at tax return
time – allowing them to spend more time focusing on their business activities.
Quarterly updates will spread the workload more evenly throughout the year, bring
the tax system closer to real-time reporting and help businesses stay on top of
their finances and avoid the last-minute rush.
HMRC is urging eligible customers to sign up to a testing programme on GOV.UK and start preparing now.
Craig Ogilvie, HMRC's Director of MTD, said:
'MTD for IT is the most significant change to the self assessment regime
since its introduction in 1997. It will make it easier for self-employed
people and landlords to stay on top of their tax affairs and help ensure
they pay the right amount of tax.
'By signing up to our testing programme now, self-employed people and
landlords will be able to familiarise themselves with the new process and
access dedicated support from our MTD Customer Support Team, before it
becomes compulsory next year.'
Internet link: HMRC press release