HM Revenue & Customs (HMRC) in the UK is urging sole traders and landlords making over £50,000 a year to prepare for Making Tax Digital (MTD) for Income Tax starting on April 6, 2026. Over 860,000 individuals will need to begin digital tax reporting, keeping records and submitting quarterly updates using recognised software.

Free software options are available for MTD for Income Tax, with tools to generate a basic summary for submission. Taxpayers will still file a tax return by January 31, but the software will hold information from quarterly updates, reducing year-end document searches. HMRC is encouraging early action for a smooth transition.

Thousands of sole traders and landlords have already joined MTD for Income Tax, with over 12,000 quarterly updates submitted through a voluntary testing program. The first return under MTD, covering the 2026–27 tax year, will be due by January 31, 2028, with no penalty points for late quarterly updates in the first 12 months. Prepare now for the digital tax regime to ensure accurate reporting and compliance.

Read more at Yahoo Finance: HMRC urges sole traders and landlords to prepare for digital tax regime