It’s a new obligation for some taxpayers to report income and expenses to HMRC digitally every three months. And it’s now only weeks away.

Making Tax Digital for Income Tax (MTD IT) is being phased in from 6 April 2026 for sole traders and landlords with qualifying income over particular thresholds. From April 2026, sole traders and landlords with qualifying income more than £50,000 for the 2024/25 tax year will have to join MTD IT. On HMRC’s figures, that means some 864,000 taxpayers will need to get to grips with the new rules from 6 April 2026.

From April 2027, sole traders and landlords with qualifying income over £30,000 for the tax year 2025/26 will be expected to join MTD IT. And from April 2028, it’s the turn of sole traders and landlords with qualifying income over £20,000 for the tax year 2026/27.

Under the new rules, taxpayers must keep digital records of income and expenses. MTD-compatible software is then used to send updates of income and expenses to HMRC every three months. In addition to these quarterly updates, there is an end-of-year tax return, also filed via MTD software.

If you are among those impacted in 2026, you should either have had a letter from HMRC already, notifying you that you must join MTD IT, or you should get a letter within the coming weeks. The letter contains a QR code that can be scanned to get further information: though you can also find out more simply by searching ‘Making Tax Digital for Income Tax for sole traders and landlords: step by step’ on gov.uk.

We may have discussed joining MTD IT with you already, but if this is not the case, and you get a letter from HMRC unexpectedly, please do let us know and we can work with you to see what needs to be done.

MTD IT represents a major change in the way you interact with HMRC. It is important that you have the right software in place, and are confident using it: alternatively, you will need to arrange for a competent third party to maintain the records and make the submissions on your behalf. The need to send updates to HMRC each quarter is something that moves record keeping and reporting very much closer to real time.

We are here to help support you through your entry to MTD IT. Please don’t hesitate to contact us with any queries, or for further advice on what you need to do to get ready.