Making Tax Digital for Income Tax goes live on 6 April 2026 – supporting the government’s
Plan for Change to deliver economic growth
Eligible taxpayers encouraged to sign up to a testing programme now to get ahead of the
changes
Digital record-keeping will deliver time-saving benefits for taxpayers
There is less than a year to go until sole traders and landlords with an income over £50,000 will be
required to use Making Tax Digital (MTD) for Income Tax.
The launch on 6 April 2026 marks a significant and ultimately time-saving change in how these
individuals will need to keep digital records and report their income to HM Revenue and Customs
(HMRC).
By keeping digital records throughout the year, sole traders and landlords can save hours previously
spent gathering information at tax return time – allowing them to spend more time focusing on their
business activities and in turn, driving economic growth as part of our Plan for Change.
Quarterly updates will spread the workload more evenly throughout the year, bring the tax system
closer to real-time reporting and help businesses stay on top of their finances and avoid the last
minute rush.
HMRC is urging eligible customers to sign up to a testing programme on GOV.UK and start
preparing now. Agents can also register their clients via GOV.UK .
James Murray MP, Exchequer Secretary to the Treasury, said:
“MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that
supports economic growth.
“By modernising how people manage their tax, we’re helping businesses work more efficiently and
productively while ensuring everyone pays their fair share.
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Date: 22 April 2025 Ref: NAT 15 25
“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as
we clear away barriers that hold back growth.”
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:
“MTD for Income Tax is the most significant change to the Self Assessment regime since its
introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of
their tax affairs and help ensure they pay the right amount of tax.
“By signing up to our testing programme now, self-employed people and landlords will be able to
familiarise themselves with the new process and access dedicated support from our MTD Customer
Support Team, before it becomes compulsory next year.”
From April 2026, individuals with qualifying income above £50,000 will need to keep digital records,
use MTD-compatible software and submit quarterly summaries of their income and expenses to
HMRC. These digital requirements will help businesses save time through more efficient record-
keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations
throughout the year.
Qualifying income includes gross income from self-employment and property before any tax
allowances or expenses are deducted. Those with qualifying income above £30,000 will also be
required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000
from April 2028.
The phased introduction of MTD for Income Tax follows the successful implementation of MTD for
VAT, which now helps more than two million businesses reduce errors and save time on their tax
affairs. Businesses which joined the MTD for VAT testing phase were better prepared for the move to
quarterly reporting.
An independent report published in 2021 found that 69% of mandated businesses experienced at
least one benefit from MTD for VAT, while 67% reported that it reduced the potential for mistakes in
their record keeping.
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