Making Tax Digital for Income Tax: What
Sole Traders and Landlords Must Do Now
The biggest change to self assessment in years is arriving.
Here is who it affects, and when.
By Karlee Pegley, Client Manager
If you are a sole trader or a landlord, Making Tax Digital for Income Tax (MTD for IT) will change how you keep records and report to HMRC. It is already arriving for some, and the net widens each year. The sooner you get ready, the smoother it will be.
Who is affected, and when?
It is based on your self assessment income from self-employment and property, added together:
- ✓ From April 2026, if that income is over £50,000
- ✓ From April 2027, if it is over £30,000
- ✓ From April 2028, if it is over £20,000
What actually changes?
Crucially, this is your combined turnover and gross rents, not your profit. Someone with £29,000 of trade and £22,000 of rent is over £50,000 and in from April 2026.
Three things. You keep digital records of income and expenses, you use MTD-compatible software such as Xero, and you send HMRC a quarterly update followed by a final declaration after the year end. No more once-a-year shoebox of receipts.
How to prepare now
Get onto software early, get your bookkeeping in order, and build the quarterly habit before it becomes mandatory. Done well, keeping little and often means your numbers stay current all year, so fewer surprises and better decisions, not just more admin. If your records are messy, now is the time to sort them.
Thresholds and dates are correct at the time of writing. We will confirm exactly when you are affected.
We will tell you the moment this applies to you, get you on the right software, and can handle the quarterly filing so it is one less thing to think about.
