HM Revenue and Customs
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Act now: 864,000 sole traders and landlords face new tax rules in two months
More than 860,000 sole traders and landlords need to start using digital tax reporting from 6 April.
- Software available to help spread tax admin throughout the year, with thousands already testing the system successfully.
- Rollout forms part of the Government’s plan to transform the UK’s tax system to support economic growth.
Sole traders and landlords earning more than £50,000 from self-employment and property are being urged to act now with two months left to prepare for Making Tax Digital (MTD) for Income Tax.
From 6 April 2026, those eligible will need to use recognised software to keep digital records and send HM Revenue and Customs (HMRC) light-touch quarterly updates of their income and expenses. These are not extra tax returns.
HMRC is providing a range of free support to help people prepare, including online guidance, webinars and videos. Those who genuinely cannot use digital tools can apply for an exemption. Further information and guidance are available on GOV.UK.
Free software options are available and once income and expenses are recorded, the software generates a simple summary to send to HMRC.
At the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31 January – but the software will already hold the information from the quarterly updates, meaning no last-minute hunt for records or receipts.
Original article link: https://www.gov.uk/government/news/act-now-864000-sole-traders-and-landlords-face-new-tax-rules-in-two-months
