Making Tax Digital (MTD) for Income Tax is no longer a future project for the first affected taxpayers. It became mandatory from 6 April 2026 for qualifying sole traders and landlords.
The thresholds now in force
HMRC’s current guidance sets out three entry points based on qualifying income from self-employment and property:
- over £50,000 in 2024/25: MTD should have started on 6 April 2026;
- over £30,000 in 2025/26: MTD starts on 6 April 2027;
- over £20,000 in 2026/27: MTD starts on 6 April 2028.
The tests apply to qualifying income, not accounting profit. HMRC reviews Self Assessment information and may write to affected taxpayers, but the taxpayer remains responsible for checking whether the rules apply.
What changes operationally
Affected taxpayers or their agents must use compatible software to keep digital records and send quarterly updates. The quarterly updates are part of the digital reporting cycle; they do not replace the annual tax-return and payment obligations.
What practices should do now
- Segment the client list by qualifying-income threshold and expected start date.
- Confirm the software, digital-record and agent-authorisation position for each affected client.
- Review any bookkeeping gaps that make quarterly reporting difficult.
- Create a repeatable quarterly timetable, responsibility matrix and exception process.
- Use the 2026 experience to improve onboarding for the April 2027 cohort.
Capacity is only part of MTD readiness. The more important question is whether the records, software and review process can support a predictable quarterly cycle.
This article is general information, not UK tax, accounting or legal advice. Check the linked official guidance and obtain advice for the relevant facts.