The way you do your Income Tax returns is changing from April 2026.

If you’re a sole trader or landlord and turnover more than £50,000, you’ll need to use recognised software to keep digital records of your income and expenses.

You’ll send quarterly updates to HMRC from this software. These quarterly updates aren’t tax returns, they’re just simple summaries of how your business is doing, in four smaller chunks, pulled from your digital records.

You won’t pay four tax bills a year, the deadline for paying your tax will still be 31 January.

HMRC won’t sign you up automatically, so it’s important to do this in time. If you’d like to start using it sooner, you can sign up voluntarily on GOV.UK.

About the software

This new way of doing tax returns requires compatible software to:

• create, store and correct digital records of their income and expenses
• send quarterly updates to HMRC
• submit their tax return by 31 January the following year

To address the practical challenge of software selection, HMRC has developed a comprehensive software finder tool that helps individuals identify compatible products to meet their specific needs. For those wanting hands-on experience before the mandatory implementation, a voluntary testing programme for 2025-26 allows participants to build confidence with the new processes while accessing dedicated support from HMRC’s specialist MTD Customer Support Team.

When MTD for Income Tax starts

MTD for Income tax will be rolled out in stages, starting in April 2026 for landlords and sole traders with turnover more than £50,000. The threshold will reduce to turnover above £30,000 in April 2027 and above £20,000 in April 2028. .

Further information

You can find further advice for Making Tax Digital over on HMRC’s dedicated campaign site: Making Tax Digital for Income Tax – HMRC guide 

There are also regular live webinars, which cover essential preparation guidance, while recorded sessions and explanatory videos help stakeholders understand the legal requirements.