Last reviewed: 7 September 2026.
Making Tax Digital for Income Tax is now live. From 6 April 2026, affected sole traders and landlords must keep digital records, send quarterly updates and submit their tax return using compatible software.
This checklist explains the practical steps to take. If you would prefer Digivolve to manage the process, visit our MTD for Income Tax service.
1. Check whether MTD applies to you
You must use Making Tax Digital for Income Tax from 6 April 2026 if you are an individual registered for Self Assessment, receive income from self-employment or property, and your total qualifying income from those sources was more than £50,000.
The threshold expands to qualifying income over £30,000 from April 2027 and over £20,000 from April 2028. Qualifying income is tested before deducting expenses, so it is broadly your gross self-employment and property income rather than taxable profit.
2. Confirm which income sources are included
Add together qualifying income from all relevant sole trades and property businesses. Employment income, dividends and pension income are not themselves self-employment or property income, although they may still belong on your Self Assessment tax return.
3. Choose compatible software
You need software that can create, store and correct digital records, send quarterly updates to HMRC, and support completion of your tax return. Digivolve works with cloud accounting systems including Xero and can help configure the records correctly from the start.
4. Start keeping digital records
Record business income and expenses digitally throughout the year. Avoid leaving twelve months of bank transactions, receipts and invoices until the Self Assessment deadline. A regular bookkeeping routine produces better information and makes each quarterly update easier.
5. Prepare for quarterly updates
Quarterly updates are summaries of income and expenses sent to HMRC through compatible software. They are not four extra tax bills. However, incomplete records can still cause inaccurate information and additional work later.
Read our detailed explanation of MTD quarterly updates.
6. Complete the year-end tax return
After the tax year ends, the records must be finalised and the tax return submitted using compatible software. The normal deadline to submit the return and pay tax due remains 31 January following the end of the tax year.
7. Check whether an exemption may apply
Some people may qualify for an exemption, including where they are digitally excluded. An exemption is not automatic in every case and may need an application to HMRC. HMRC says applications should normally be made before the date you are required to use MTD.
8. Arrange agent authorisation and onboarding
If an accountant will manage MTD for you, allow time for authorisation, software setup, bank feeds and opening balances. Leaving onboarding until the first quarterly deadline increases the risk of missing information.
How Digivolve can help
Digivolve can assess whether you are affected, set up compatible software, maintain digital records and deal with the required submissions. We support sole traders and landlords in Haywards Heath and across the UK.
Contact Digivolve to discuss your MTD position, or explore our complete Making Tax Digital support.
Official guidance
Rules can change. Check the latest HMRC Making Tax Digital for Income Tax guidance. This article provides general information and is not personal tax advice.