Sole traders and landlords are being urged to start preparing now ahead of the Making Tax Digital (MTD) for Income Tax launch next year.
From the 6th of April 2026, sole traders and landlords with an income over £50,000 will be required to use MTD for Income Tax. This involves keeping digital records throughout the year with quarterly updates.
Those who are eligible are being urged to sign up for the testing programme now to better prepare themselves for the changes, especially as there won’t be any penalties for late quarterly updates during the testing period. This will help taxpayers get used to the process without risk.
James Murray MP, Exchequer Secretary to the Treasury, said, “MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.
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“By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.
“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”
Craig Ogilvie, HMRC’s Director of Making Tax Digital, added, “MTD for Income Tax 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.”
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