864,000 Sole Traders and Landlords Must Go Digital by April 2026
HMRC confirms Making Tax Digital for Income Tax launches 6 April 2026 for those earning £50,000+. Two months to prepare.
HMRC has issued a reminder that Making Tax Digital for Income Tax (MTD for ITSA) launches on 6 April 2026. Over 864,000 sole traders and landlords with income above £50,000 must switch to digital record-keeping and quarterly reporting.
This is the biggest change to Self Assessment since it began in 1997. If you're affected, you have two months to get ready.
Key Points
- Who's affected first: Sole traders and landlords earning £50,000+ (based on 2024-25 tax year)
- Start date: 6 April 2026
- What changes: You'll keep digital records using compatible software and submit quarterly updates to HMRC
- Annual returns stay: You still file your Self Assessment by 31 January each year
Quarterly Deadlines for 2026-27
| Quarter | Period | Update Due |
|---|---|---|
| Q1 | 6 Apr - 5 Jul 2026 | 7 August 2026 |
| Q2 | 6 Jul - 5 Oct 2026 | 7 November 2026 |
| Q3 | 6 Oct - 5 Jan 2027 | 7 February 2027 |
| Q4 | 6 Jan - 5 Apr 2027 | 7 May 2027 |
Grace Period for New Users
If you join MTD in April 2026, you won't receive penalty points for late quarterly updates during your first 12 months. This gives you time to adjust to the new system.
What to Do Now
- Check your income — if you earned £50,000+ from self-employment or property in 2024-25, you're in the first wave
- Choose MTD software — free options are available, or use paid accounting software
- Start keeping digital records — get used to the system before April
HMRC says over 20,000 quarterly updates have already been submitted successfully during voluntary testing.
Information accurate as of 15 February 2026. Verify current details on GOV.UK.