Tax & Compliance

Making Tax Digital for Income Tax takes effect from 6 April 2026, requiring sole traders and landlords earning over £50,000 to keep digital records and file quarterly updates with HMRC using compatible software. This guide covers who must comply, the phased income thresholds (£50k, £30k, £20k), quarterly deadlines, the new points-based penalty system, and how to choose the right accounting software. It also addresses common misconceptions, exemptions, and a practical step-by-step preparation plan to help sole traders transition smoothly before the first deadline hits in August 2026.