If you’re a sole trader or landlord who should already be using Making Tax Digital for Income Tax (MTD ITSA) but haven’t signed up, now is the time to take action.
HMRC is stepping up its efforts to bring taxpayers who have missed the move to MTD ITSA into the new system. So, if you’ve been putting it off, assumed it didn’t apply to you, or simply haven’t got around to sorting it out, ignoring MTD is no longer an option.
The good news is that there’s still an opportunity to get back on track, and we’re here to help.
Who needs to use Making Tax Digital?
Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords whose qualifying income from self-employment and property is more than £50,000 a year.
Importantly, this is based on your income before expenses, not your profit.
The rules will be extended over the next two years:
- From April 2026 – qualifying income over £50,000
- From April 2027 – qualifying income over £30,000
- From April 2028 – qualifying income over £20,000
So, even if MTD doesn't apply to you today, it could do soon.
What does MTD actually mean?
If you're required to use MTD for Income Tax, it changes the way you keep your accounting records and report information to HMRC.
You'll need to use MTD-compatible software to:
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keep digital records of your business or property income and expenses;
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submit quarterly updates to HMRC; and
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complete your tax return through compatible software.
For those who were required to start using MTD from April 2026, the first quarterly update was due by 7 August 2026.
If that date passed you by, there’s no need to panic, but it’s important to take action now.
"HMRC didn't tell me I had to join"
This is an important point. HMRC reviews Self Assessment tax returns to identify people who should fall within MTD and writes to those it believes are affected.
However, not receiving a letter doesn't mean MTD doesn’t apply to you. HMRC's own guidance makes clear that taxpayers are responsible for checking whether MTD applies to them and ensuring they're signed up and ready.
That's why anyone with income from self-employment or property should check their position rather than waiting for a letter from HMRC.
Haven't signed up yet? Deal with it now.
If you think MTD applies to you but you haven't done anything about it, the worst approach is to continue putting it off.
You may need to establish whether you should be using MTD, register correctly, choose suitable accounting software, organise your digital records and understand what needs submitting to HMRC.
That can sound like a lot, particularly if you've always dealt with your Self Assessment once a year.
The good news is that you don't have to work it all out yourself. We can take care of MTD for you. This is exactly where we can help. We can review your circumstances, establish whether MTD applies to you and help get everything set up correctly. And if you'd rather not spend your time worrying about digital records, quarterly submissions, deadlines and HMRC requirements, we can support you with an ongoing accountancy service.
Whether you've missed the MTD deadline, you're not sure whether you should have registered or you know you'll be brought into MTD from April 2027, now is a good time to get organised.
Don't wait for HMRC to chase you
If you're a sole trader or landlord and you're unsure where you stand with Making Tax Digital, get in touch with us today. We'll help you understand what you need to do, get everything in order and make the transition to MTD as straightforward as possible. Click here to learn more and send us an enquiry.
