Business / The briefing

Making Tax Digital for Income Tax

Digital record keeping is becoming part of the routine for more sole traders and landlords.

By James Reed · 1 October 2026 · 5 min read

Who comes into scope?

From 6 April 2026, Making Tax Digital for Income Tax applies to eligible sole traders and landlords with qualifying income over £50,000. The threshold extends to income over £30,000 from April 2027 and over £20,000 from April 2028. Qualifying income broadly means gross self-employment and property income combined, before expenses; exemptions and individual circumstances should be checked.

What changes in practice?

Those within scope must keep digital records and send quarterly updates through compatible software. Quarterly updates do not replace the need to finalise the tax position for the year. They should not be confused with a requirement to pay income tax quarterly.

Prepare before your start date

Check the income on the relevant tax return, identify suitable software and agree how records will be maintained. If you receive property income jointly, or have several businesses, discuss the record-keeping arrangements early. Keep an eye on HMRC guidance as your start date approaches.

General information for England and Wales, reviewed October 2026. This is not advice on your individual circumstances. Rules and guidance may change.

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