You may have spotted it already. More adverts for accounting apps on television, more mentions of digital tax online and more noise around record keeping.
That is because the move to Making Tax Digital for Income Tax (MTD for IT) is accelerating and the focus is now firmly on individual taxpayers.
HM Revenue and Customs has confirmed that a fresh round of letters is being sent to landlords, sole traders and self-employed people with gross income above £50,000. Close to one million people will be told they must join MTD from six April 2026.
These letters will confirm:
- An overview of Making Tax Digital for Income Tax and how it works
- The point at which Self Assessment taxpayers must begin using MTD
- A breakdown of the new reporting rules
- The key differences between the current system and how records and reports will be handled under MTD
These letters are not going to accountants or tax agents. They are being sent straight to taxpayers, so if one lands on your doorstep do not ignore it.
What is changing under Making Tax Digital for Income Tax?
Under the new rules, affected taxpayers will need to keep digital records and send quarterly updates to HMRC using approved software.
The first quarterly submission deadline falls on 7 August 2026, which means you need to be set up and comfortable with the system before the new tax year even begins.
A common misunderstanding is that quarterly reporting replaces the tax return, but you will still need to complete an annual return alongside the new MTD submissions.
This means that those entering MTD for IT in 2026 must also file as normal by 31 January 2027 for the current 2025/2026 tax year.
After this first phase of MTD for IT, the gross income threshold drops to £30,000 in April 2027 and again to £20,000 in April 2028. As a result, many smaller landlords and sole traders will be brought into the system in future.
Getting ready for Making Tax Digital for Income Tax
Software providers are now heavily promoting their MTD ready tools, while banks are offering access to free options for some customers.
Even so, software alone is not the solution. The real challenge is changing how you manage your records throughout the year.
Starting early gives you breathing space to choose suitable software and avoid a last-minute rush.