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Making Tax Digital for Income Tax Starts 6 April as HMRC Alerts Sole Traders and Landlords

Eligible taxpayers must keep digital records in compatible software with quarterly updates to HMRC.

Overview

  • The rollout initially captures individuals with combined self‑employment and property income over £50,000 from April 2026, extending to over £30,000 in April 2027 and over £20,000 in April 2028.
  • HMRC estimates about 780,000 people will enter the system this April, with a further 970,000 joining in April 2027.
  • HMRC is sending notification letters in February and March, though compliance is required even without a letter, and nearly 1,300 digital‑use exemptions have been sought with 661 granted, 220 refused and roughly 390 pending.
  • More than 2,000 quarterly updates have already been submitted in HMRC’s testing programme, and compliant software — including free options — produces the summaries, though those with multiple businesses or rental income may need separate sets of updates each quarter.
  • Non‑compliance attracts a points‑based penalty regime, with charges of up to about £200 once thresholds are reached.