From April 2026, Making Tax Digital for Income Tax Self Assessment will change how self-employed individuals manage and report their finances, so now’s the time to prepare! The change means you will have to use digital software to manage your tax affairs. It will be rolled out over three years, starting with those earning over £50k a year. From April 2027, the threshold will be lowered to £30k and £20k from April 2028.
From 6 April 2026, the first wave of 860,000 sole traders and landlords must use digital software to manage their tax affairs.
This marks the beginning of the most significant shift in self-employment taxation in a generation.
The new Making Tax Digital for Income Tax (MTD ITSA) system will be rolled out over three years, starting with those earning over £50,000 a year.
The threshold will progressively lower to £30,000 from April 2027 and to £20,000 from April 2028, eventually bringing up to three million more self-employed people into the digital regime.
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