Making Tax Digital: are you ready?

HMRC is introducing Making Tax Digital for Income Tax in stages. If you are a sole trader or landlord, you may soon need to keep digital records and send quarterly updates using compatible software.

When does it apply?

• From 6 April 2026: qualifying gross income over £50,000

• From 6 April 2027: qualifying gross income over £30,000

• From 6 April 2028: qualifying gross income over £20,000

The thresholds apply to total qualifying gross income from self-employment and property, before expenses. They do not apply simply because your salary or total earnings exceed the threshold.

What will you need to do?

• Keep digital records

• Use software that works with Making Tax Digital

• Send quarterly updates to HMRC

• Submit the required year-end information

How Redkite can help

We can help you prepare your records, choose a practical digital process and understand what the change means for your business. The rules can change, so always check the latest official guidance.

Official HMRC guidance:

https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax