There are just six months remaining until sole traders and landlords with qualifying income exceeding £50,000 must adopt Making Tax Digital (MTD) for Income Tax.
The rollout on April 6, 2026 represents a substantial and ultimately time-saving transformation in how these people must maintain digital records and submit their income to HM Revenue and Customs (HMRC). While six months might seem considerable, HMRC is urging customers to prepare now by joining the testing programme.
HMRC said: « It will give you the chance to get comfortable with the new system before it becomes mandatory and access to our dedicated support team – essentially a safety net while you learn the ropes. »
HMRC is eager to emphasise the change won’t result in anyone needing to submit additional tax returns, reports the Daily Record.
HMRC said: « The required quarterly updates are simple summaries that your software generates automatically. Think of it as digital bookkeeping that talks to HMRC four times a year, rather than cramming everything into January for your Self Assessment return.
« If you spot an error, you can fix it in the next update. More than 2,000 updates have been successfully submitted in the testing programme and the feedback from those involved has been encouragingly positive. »
HMRC also noted customers will require compatible software, though free options are available alongside paid alternatives. The tax authority stated: « There isn’t a one size fits all – the key is finding which software works for your business. The software will give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and avoiding nasty January surprises.
« If you’re already using spreadsheets or accounting software, you can get compatible software that connects to your existing records and meets the new requirements. »
Craig Ogilvie, Making Tax Digital director, urged: « Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now’s the time to start preparing. MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return.
« There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it. »
HMRC estimates that approximately 780,000 self-employed people and landlords will be required to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. You can sign up for the testing programme on GOV.UK.
