With thousands of sole traders and landlords joining the first wave of MTD for Income Tax, HMRC has launched free online guidance, webinars and videos to provide support to those who are in need.
Making Tax Digital for Income Tax
Making Tax Digital is a key part of the government’s tax administration strategy – a 10-year plan to build a ‘trusted and modern’ tax system.
Eventually, all businesses will need to keep digital records by using software that works with MTD and then submit updates every quarter.
This will help to bring the tax system closer to real-time.
If you are self-employed or a landlord, you will be affected from the:
- 6th April 2026 – if you have an annual business or property income of more than £50,000
- April 2027 – if you have an annual business or property income of more than £30,000
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HMRC MTD support
According to HMRC figures, more than 860,000 sole traders and landlords will need to start using digital tax reporting from April, which gives them just a couple of months to prepare for the changes.
Those affected in this first wave are being urged to act now to ensure they understand their new obligations.
HMRC is providing a range of free support to help people prepare, including online guidance, webinars and videos.
Free software options are also available, and once income and expenses are recorded, the software generates a simple summary that can be sent to HMRC.
At the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31st of January – but the software will already hold the information from the quarterly updates, meaning taxpayers won’t need to spend their time looking for records or receipts.
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