Sole traders with sales of more than £50,000 will come under HMRC’s Making Tax Digital umbrella in April 2026 – and that means they’re going to have to maintain digital records using compatible online software.
Making Tax Digital is the HMRC toolbar managing taxes online rather than with self-assessment tax returns. VAT-registered businesses are already using it to maintain digital business records and submit VAT returns.
On April 6th 2026, MTD rules will be extended to income tax. Sole traders and landlords earning above £50,000 annually will need to sign up ahead of the deadline. Those with income above £30,000 must do so from April 2027.
The best advice is to talk to a qualified accountant, who will understand the rules and be able to guide you through them.
