Sole traders and landlords have been warned they need to act now to be ready for Making Tax Digital (MTD) for Income Tax.
HMRC is reminding those earning more than £50,000 from self-employment and property of major changes from 6 April 2026. They will need to use recognised software to keep digital records and send light-touch quarterly updates of their income and expenses.
The tax authority says these are not extra tax returns.
Free software options are available and once income and expenses are recorded, the software generates a simple summary to send to HMRC.
HMRC says that at the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31 January. However, the software will already hold the information from the quarterly updates, meaning no last-minute hunt for records or receipts.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:
‘With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.
‘This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.
‘Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.’
Reference: HMRC press release
