HMRC’s Making Tax Digital for Income Tax (MTD for IT) is moving ahead, with new updates coming into effect soon.

From 6 April 2026, the rules will apply to sole traders and landlords with qualifying income (gross trading and/or property income) over £50,000 in the 2024/25 tax year. The scheme will then expand to include more taxpayers over the following two years.

Future rollout dates:

• April 2027: applies to those earning over £30,000
• April 2028: applies to those earning over £20,000

Making Tax Digital for Income Tax is mandatory and, if affected, you will need to:

• Keep digital records through MTD-compatible software
• Submit a quarterly summary of your business and/or property income and expenses to HMRC
• File an end-of-year return (also via software—HMRC’s free tools won’t be available)

Other changes to Making Tax Digital for Income Tax (MTD for IT) announced in the Spring Statement included:

• A short list of people who will be allowed to delay or be exempt from joining MTD for IT.
• People whose accounting year ends on 31 March will be able to start using MTD for IT from 1 April instead of 6 April. This small change helps avoid manual adjustments at the beginning of the new tax year.

If you don’t currently have to comply with MTD, but will in the future, you can opt into MTD early to get used to the system. Need a hand getting started? Get in touch, we’re here to help.