Making Tax Digital (MTD) for Income Tax is no longer a distant HMRC idea — it’s happening, and it starts from 6 April 2026.
If you’re a sole trader and/or landlord, this is a significant change to how you keep records and report your income. While it might sound daunting at first, the good news is that with the right preparation and support, it doesn’t have to be stressful.
Let’s break down what’s changing, who it affects, and what you should be doing now.
Who Will MTD for Income Tax Apply To?
You’ll need to comply with Making Tax Digital for Income Tax from April 2026 if:
You are a sole trader and/or landlord, and
Your total income (not profit) from self-employment and/or rental properties was £50,000 or more in the 2024/25 tax year
This income test looks at turnover and rental income combined, not your taxable profit — which catches more people than you would expect!
HMRC has already started writing to individuals who are likely to be affected. If you receive one of these letters, it’s important not to ignore it. Even if the first deadline in August 2026 feels a long way off, early preparation will make the transition far smoother.
What Is Actually Changing?
Under Making Tax Digital for Income Tax, you’ll no longer submit just one Self Assessment tax return each year.
Instead, you’ll need to:
Keep your accounting records in compatible digital accounting software
Submit quarterly updates to HMRC for:
Sole trade income and expenses
Rental income and expenses
Submit a final declaration at the end of the tax year containing any year-end adjustments to your already reported income, plus any other income you have (interest, dividends etc.).
This declaration replaces your usual self-assessment submission
That’s five submissions per year instead of one!
These quarterly updates are summaries of your profit and loss position — they’re not payments, but they do mean no more leaving everything until after the tax year ends.
Key Dates to Put in Your Diary
6 April 2026 – MTD for Income Tax officially begins
7 August 2026 – Deadline for the first quarterly submission
7 November 2026 – Deadline for the second quarterly submission
31 January 2027 – Deadline to submit your 2025/26 Self Assessment tax return (yes, you still have to do this one as normal!)
7 February 2027 – Deadline for the third quarterly submission
7 May 2027 – Deadline for the fourth quarterly submission
31 January 2028 – Deadline for the final declaration for 2026/27
MTD submissions will run alongside your existing tax obligations initially, so good systems will be essential.
This is also why it is more important than ever to get your 2025/26 tax return done in plenty of time before the 31 January 2027 deadline - there are only 7 days between that and the deadline for the third quarterly submission for 2026/27!
Do I Need Accounting Software?
Yes. Spreadsheets and paper records on their own won’t be enough.
You’ll need to use HMRC-compatible digital accounting software that can:
Maintain digital records
Submit quarterly updates directly to HMRC
Choosing the right software — and setting it up properly — is one of the most important steps in getting MTD-ready. Done well, it can actually save time and give you much better visibility over your finances during the year.
How We Can Help
Here at Zenith Digital Accountants, we specialise in helping sole traders and landlords move confidently into digital accounting.
We can support you with:
Choosing and setting up the right accounting software
Training and ongoing support
Quarterly MTD submissions
End-of-year final declarations
As much or as little involvement as you want — from full outsourcing to light-touch support
Whether you’re tech-confident or already dreading the change, we’ll meet you where you are.
Get MTD-Ready Without the Stress
If Making Tax Digital feels overwhelming — or you simply don’t want to deal with it yourself — we’re here to help.
Get in touch today to arrange a free 30-minute consultation and find out how we can support you with Making Tax Digital for Income Tax, now and beyond April 2026.
Preparing early really does make all the difference.
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