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Lyman HughesAssociates · Accountants

A guide for sole traders and landlords

Making Tax Digital for Income Tax: what it means for you

HMRC's Making Tax Digital rules change how sole traders and landlords keep records and report their income. The rules started in April 2026 and are being extended over the next two years.

Does it apply to you?

You must use Making Tax Digital for Income Tax if you are a sole trader or landlord registered for Self Assessment and your qualifying income is over the threshold for that year.

  1. From 6 April 2026
    Over £50,000
    Based on qualifying income in your 2024/25 tax return
  2. From 6 April 2027
    Over £30,000
    Based on qualifying income in your 2025/26 tax return
  3. From 6 April 2028
    Over £20,000
    Based on qualifying income in your 2026/27 tax return

What counts as qualifying income?

Your total income from self-employment and property before expenses — your turnover, not your profit. Employment income taxed through PAYE, a share of partnership profits, dividends and pensions do not count.

Already VAT registered?

Making Tax Digital for VAT already applies to all VAT-registered businesses, so your VAT returns must be submitted through compatible software.

What changes

  1. 1

    Keep digital records

    Record your income and expenses in software that works with Making Tax Digital.

  2. 2

    Send quarterly updates

    Send a summary of your income and expenses to HMRC every three months.

  3. 3

    Submit your tax return

    Submit your tax return for the year by 31 January, as now.

Key dates for the 2026/27 tax year
UpdatePeriod coveredDeadline
Quarter 16 April – 5 July 20267 August 2026
Quarter 26 July – 5 October 20267 November 2026
Quarter 36 October 2026 – 5 January 20277 February 2027
Quarter 46 January – 5 April 20277 May 2027
Tax returnWhole 2026/27 tax year31 January 2028

Some people can apply for an exemption, for example if they cannot use digital tools. Source: HMRC guidance on GOV.UK, checked October 2026.

Accountant reviewing a client file at a desk

How we can help

  • Check whether, and from when, Making Tax Digital applies to you
  • Help you choose compatible software and set up your digital records
  • Send your quarterly updates to HMRC on your behalf
  • Prepare and submit your year-end tax return
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