Making Tax Digital for Income Tax (MTD IT) comes into effect from 6 April 2026 for sole traders and landlords with qualifying income over £50,000, with thresholds expanding in later years. The shift is less about paying more tax and more about changing how income is recorded and reported to HMRC throughout the year. Those affected will need to keep digital records, submit quarterly updates using compatible software, and complete a year-end process digitally. While businesses with organised digital systems may find the transition straightforward, those relying on manual or paper-based processes could face disruption. This guide outlines who needs to act, what the new requirements involve, and the key steps to take now to ensure a smooth transition.
