HMRC launches new guidance to help sole traders comply with Making Tax Digital changes
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Posted: Wed 6th Nov 2024
The government has released a new online tool that sole traders and landlords can use to check if they need to comply with the upcoming Making Tax Digital for income tax rules.
As part of the government's major project to digitise the tax system, certain sole traders and landlords will need to submit quarterly tax information digitally from April 2026.
The tool can be used to check if you need to use the service and when you need to start.
You'll need to follow the Making Tax Digital for income tax rules from 6 April 2026 if all of the following apply:
you are an individual registered for Self Assessment
you get income from self-employment or property, or both, before 6 April 2025
you have a qualifying income of more than £50,000 in the 2024 to 2025 tax year
On 5 April 2027, it will extended to those with an income of more than £30,000.
In the Autumn Budget last month, the government said it will expand the changes to sole traders and landlords with incomes over £20,000 by the end of the Parliament, with the precise timing announced at "a future fiscal event".
Making Tax Digital already applies to VAT-registered businesses.
Relevant resources
How to pay Self Assessment tax
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