By Chris Downing on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
Making Tax Digital (MTD) for Income Tax will change how eligible sole traders and landlords handle their income tax from April 2026, adding in some new legal requirements.
It’s one of the biggest shake-ups in personal tax for a generation.
Here are five things you need to know to kick-start your own MTD for Income Tax preparations.
1. Making Tax Digital for Income Tax starts in April 2026 or April 2027 – or possibly April 2028
If you have gross income over £50,000, you’ll have to start following the MTD for Income Tax rules from April 2026.
If have gross income above £30,000, you’ll have to follow the new rules a year later, in April 2027.
And in April 2028, if your gross income is over £20,000, you’ll have to comply with the new rules.
The government has hinted that MTD for Income Tax will apply to incomes lower than this but hasn’t yet made any announcements.
2. Here’s the basic MTD for Income Tax requirements
Here’s a short summary of what Making Tax Digital for Income Tax means for you:
Using compatible software, such as Sage Accounting, you’ll need to send HMRC quarterly reports for