MAKING TAX DIGITAL EXPLAINED
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Making Tax Digital, often called MTD, is being introduced gradually for UK sole traders and landlords.
From April 2026, MTD applies to those with qualifying income over £50,000. From April 2027, it applies to those over £30,000. From April 2028, it is planned to apply to those over £20,000.
If you are affected, HMRC should notify you. However, it is still important to understand the rules early so you can prepare.
Common misconception
Not true.
Making Tax Digital is being introduced in stages, so many sole traders will need to prepare before they receive any communication from HMRC.
The sooner you know your obligations, the easier the transition will be.
Making Tax Digital depends on your qualifying income, so check your income level before the rules apply.
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