HM Revenue & Customs (HMRC) in the UK has called on sole traders and landlords earning more than £50,000 ($68,426) a year to prepare for Making Tax Digital (MTD) for Income Tax, which starts on 6 April 2026.

The authority estimates that more than 860,000 sole traders and landlords will need to begin digital tax reporting.

After MTD becomes effective, those within scope must keep digital records and submit quarterly “light-touch” updates of income and expenses using recognised software.

HMRC said free software options are available, with tools that can generate a basic summary for submission once data is entered.

Taxpayers in MTD for Income Tax will still need to file a tax return by the following 31 January, but HMRC noted that the software will already hold information from the quarterly updates, reducing the need to search for documents at year end.

HMRC MTD director Craig Ogilvie said: “With two months to go until MTD for Income Tax launches, now is the time to act.

“A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.

“This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.”

HMRC added that thousands of sole traders and landlords have already joined MTD for Income Tax, with more than 12,000 quarterly updates submitted through a voluntary testing programme.

Those entering the regime in April 2026 will still file their 2025–26 tax return in the current format by 31 January 2027, as it includes a period before MTD begins.

The first return under MTD, covering the 2026–27 tax year, will be due by 31 January 2028.

To ease the transition, the government has confirmed that customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates during the first 12 months.