Making Tax Digital for Income Tax stopped being a future problem in April 2026 — it's now live for the first wave of sole traders and landlords. Here's what it actually requires, who's in and when, and what to do about it without giving up your evenings.

Who's in, and when

  • From April 2026 — sole traders and landlords with qualifying income over £50,000.
  • From April 2027 — qualifying income over £30,000.
  • From April 2028 — qualifying income over £20,000 (announced; check current HMRC guidance).

"Qualifying income" is your combined gross self-employment and property income — before expenses. If you're under the threshold for a given year, Self Assessment continues as before.

The three obligations

  • Digital records — each item of income and expense kept in software, not on paper.
  • Quarterly updates — a cumulative summary of income and expenses sent to HMRC each quarter through recognised software.
  • A final declaration after year end — replacing the old return, bringing everything together.

What quarterly updates are not

They're not four tax returns and not four tax bills. No accuracy declarations, no tax due on submission — they're summaries that keep your position visible during the year. Your tax is still settled after year end.

What "digital records" mean in practice

A photographed receipt that lands in bookkeeping software as a dated, categorised transaction is a digital record. A shoebox is not, and neither is retyping a paper total into a return once a year. The habit that satisfies MTD is capturing things as they happen — which is exactly the habit WhatsApp bookkeeping makes painless.

A note on submission software

Updates must go to HMRC through recognised software. SubReady prepares your digital records and quarterly figures today; our direct HMRC submission integration is built and currently progressing through HMRC's production-access process — see our MTD status page for exactly what's live and what's pending. In the meantime your accountant can file through their own software from your SubReady records.

This article is general information for UK sole traders and subcontractors, not tax, accounting or financial advice. Rules change — check current HMRC guidance or speak to an accountant about your own position.