Compliance
What’s New for Making Tax Digital for Income Tax (MTD-IT) in 2026
From April 2026, UK sole traders and landlords over £50,000 income must use digital tools and send **quarterly updates** under Making Tax Digital rules.
By NomadicTax Research Team • 5-8 min read • June 14, 2026
## Overview of MTD-IT requirements from April 2026
- Effective **6 April 2026**, sole traders and landlords with total income from self-employment and property over **£50,000** must comply with **Making Tax Digital for Income Tax**, including digital record-keeping and quarterly updates to HMRC. ([gov.uk](https://www.gov.uk/government/publications/update-notice-for-making-tax-digital-for-income-tax?utm_source=openai))
- Gradual thresholds will de-scope or bring in more taxpayers in following years: income thresholds decrease for reporting from 2027-28 (over £30,000) and 2028-29 (over £20,000). ([gov.uk](https://www.gov.uk/government/publications/update-notice-for-making-tax-digital-for-income-tax?utm_source=openai))
## Key components of compliance
- Use **compliant software** for all business and property income and expenses. ([gov.uk](https://www.gov.uk/government/publications/update-notice-for-making-tax-digital-for-income-tax?utm_source=openai))
- Submit **quarterly updates** of income and expenses using that software. ([gov.uk](https://www.gov.uk/government/publications/update-notice-for-making-tax-digital-for-income-tax?utm_source=openai))
- Retain digital records in line with the rules. Paper records replaceable only in limited circumstances. **Do not wait** until next year—April 2026 is here. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
## Why this matters to you
- More consistent cashflow visibility for HMRC and you: less surprise tax due dates.
- Potentially higher compliance cost initially (software, training).
- Errors in records or late submissions can lead to penalties.
## Practical examples
- A landlord with £60,000 rental income will need software to track all maintenance and rental receipts, update HMRC every quarter, not wait for an annual self-assessment only.
- A self-employed consultant earning £55,000 in turnover—must submit income/expense updates quarterly and maintain digital logs of invoices, expenses (fuel, home office, etc.).
- Someone with income between £30,000-£50,000: starting April 2027 will join requirement. Now is good time to prepare.
## Actions to take now
1. Assess whether your income reaches the threshold. If so, begin using digital record-keeping tools now.
2. Select software compatible with HMRC’s MTD-IT specifications.
3. Train staff or yourself on quarterly update submission process.
4. Review current record retention policies: ensure digital infrastructure is secure, backed up.
5. Consult a tax adviser if you have cross-border income or complicated property arrangements; compliance particularly important there.
**Summary**: MTD-IT is now mandatory from **6 April 2026** for those above £50,000 of qualifying income—build in processes now to meet digital, quarterly reporting; thresholds will continue to reduce over next two years.