Just One Month to Go to Making Tax Digital for Income Tax - What Sole Traders and Landlords need to do now!

Making Tax Digital (MTD) for Income Tax is fast approaching and will affect sole traders and landlords with qualifying income above £50,000 from 6 April 2026, with further expansion in 2027 and 2028.

There were some important announcements in the Autumn Budget 2025 that you should be aware of.

Are there any exemptions?

Certain taxpayers are outside the scope, including for example, trustees and personal representatives managing the affairs of someone who has passed away do not need to register.  In addition, there are situations where an exemption can be applied for so, it pays to check whether your situation might mean you can apply for an exemption.  In these situations, it is recommended to apply sooner rather than later, as HMRC approval may take some time.

📅 Who is deferred until April 2027?

While many sole traders and landlords will be brought into MTD from April 2026, some categories have been deferred, including:

• Individuals reporting income on the SA109 page (e.g. residence or remittance basis issues)
• Recipients of trust or estate income
• Individuals using averaging adjustments (e.g. Farmers and creative artists)
• Recipients of qualifying care income
• Non-UK resident foreign entertainers and sportspeople

Taxpayers under deputyship will be fully exempt from MTD for Income Tax.

👉 What should sole traders and landlords be doing now?

Even with easements and deferrals, MTD represents a significant change to how income is recorded and reported to HM Revenue and Customs. Quarterly reporting, digital record-keeping and compatible software will soon become the norm.

Now is the time to check whether MTD applies to you, confirm when you’ll be mandated, and make sure your systems are ready well before April 2026.

If you’re a sole trader or landlord and would like help understanding your MTD start date, choosing the right software, or preparing for quarterly reporting, get in touch with our Lead Digital Advisor, Elaine Hardy, or our Tax Manager, Val Nield - early planning will make the transition far smoother.

Elaine Hardy                                                       Val Nield

Lead Digital Advisor                                          Tax Manager

01942 292542                                                      01942 292514

elaine.hardy@teamjs.co.uk                                val.nield@teamjs.co.uk