Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords

Making Tax Digital for Income Tax Self Assessment for sole traders and landlords

Details

This measure extends Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) to sole traders and landlords that have business or property income over £30,000.

Sole traders and landlords with an income over this threshold will be required to:

• maintain digital records
• update HMRC each quarter using compatible software

In March 2025, the government set out plans to introduce legislation to lower the qualifying income threshold. From 6 April 2028, sole traders and landlords with a qualifying income over £20,000 in the 2026 to 2027 tax year, will need to use Making Tax Digital for Income Tax.