From 6 April 2026, HM Revenue and Customs (HMRC) is introducing Making Tax Digital (MTD) for Income Tax – the new way of reporting income and expenses from self-employment and property. From this date, some sole traders will need to keep digital records, using MTD compatible software to submit quarterly summaries of their income and expenses to HMRC.

MTD will be rolled out in stages, starting in April 2026 for landlords and sole traders with qualifying income over £50,000. The threshold will reduce to qualifying income over £30,000 in April 2027 and to £20,000 in April 2028.

Self-employed individuals in the fashion and textile sector who may be affected include freelance fashion designers, textile designers, pattern cutters, machinists, fashion sales agents, and many more. This list is not exhaustive and is for informational purposes only.

Under the new way of reporting, sole traders will need to use MTD compatible software to create and store digital records, send quarterly updates to HMRC, and submit a tax return and pay tax by 31st January the following year.

HMRC is conducting a testing programme to support taxpayers and accountants to voluntarily sign up and become familiar with the new system before moving to MTD from 6 April 2026. For further information about MTD for Income Tax, including a series of videos and webinars, visit GOV.UK. To learn more about registering and participating in webinars go to HMRC videos and webinars for Making Tax Digital for Income Tax – GOV.UK.

Click here for more information: Making Tax Digital for Income Tax Self Assessment