From April 2026, self-employed individuals and landlords with an income of more than £50,000 have been required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD (Making Tax Digital)-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027.
Making Tax Digital for Income Tax was due to become mandatory for all sole traders on 6 April 2026. However, following NFU lobbying, anyone who may reasonably expect to use profit averaging will now be entitled to a deferment until 6 April 2027.
Our video series will explain what MTD is and help you prepare.