Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC.

From 6 April 2026, sole traders and landlords with qualifying income over £50,000 in the 2024 to 2025 tax year and who are not exempt need to use Making Tax Digital for Income Tax for the 2026 to 2027 tax year.

You need to use compatible software that works with Making Tax Digital for Income Tax to:

• create and store digital records of your self-employment and property income and expenses
• send quarterly updates every 3 months based on the digital records you create in your software - these are totals of your self-employment and property income and expenses (they are summaries, not tax returns)
• submit your tax return and add any other income sources you have, unless we have already added them for you

You’ll still need to pay your full tax bill by 31 January following the end of the tax year.