Changes to reporting income and expenses from self-employment and property
This is a guest article from HRMC
From 6 April 2026, HM Revenue and Customs (HMRC) is introducing Making Tax Digital (MTD) for Income Tax – a new way of reporting income and expenses from self-employment and property. From this date, some sole traders and landlords will need to keep digital records, using MTD compatible software to submit quarterly summaries of their income and expenses to HMRC. By keeping digital records throughout the year, managing tax affairs will become more accurate, reducing the potential for errors and supporting business productivity and growth.
MTD will be rolled out in stages, starting in April 2026 for landlords and sole traders with qualifying income over £50,000. The threshold will reduce to qualifying income over £30,000 in April 2027 and to £20,000 in April 2028.
Under the new reporting system, landlords and sole traders, will be required to use compatible software to create and store digital records of their income and expenses, send quarterly updates of income and expenses to HM Revenue and Customs, and submit a tax return and pay tax due by 31st January the following year.
MTD can offer several benefits from improved financial and tax management, digital record keeping to minimise mistakes and fewer manual processes which can save time for higher value business activities.
To ensure a smooth transition, HM Revenue and Customs is conducting a testing programme to support taxpayers and accountants to voluntarily sign up and become familiar with the new system before moving to MTD from 6th April 2026. For further information about MTD for Income Tax, including a series of videos and webinars, visit GOV.UK. To learn more about registering and participating in webinars go to HMRC videos and webinars for Making Tax Digital for Income Tax - GOV.UK.
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