Making Tax Digital for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with qualifying self-employment or property income above £50,000. Over 864,000 people had to file their first quarterly digital update (covering 6 April to 5 July 2026) by 7 August 2026 using HMRC-recognised software, moving from one annual return to quarterly submissions plus a final declaration. HMRC is waiving penalty points for late quarterly updates in the first year, but from year two a points-based system triggers a £200 fine once four points accrue.
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Making Tax Digital live: 864k UK sole traders hit first quarterly deadline
Why this matters for founders
Founders operating as sole traders (or with property income) above £50k must adopt HMRC-compatible accounting software now and keep digital records, since the £30k threshold follows in April 2027 and £20k in April 2028. Get software and a quarterly filing routine in place this year while penalties are still relaxed.
Source: IBTimes UK
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