From April 2026, Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for sole traders and landlords earning over £50,000. If that’s you, this isn’t something you can ignore – and it’s not something your accountant can handle entirely on your behalf either.

Here’s what HMRC actually requires, and why the “my accountant deals with all that” approach needs a rethink.

The Core HMRC Requirements

To be MTD compliant, you must:

• Keep digital records of all your income and expenses
• Use HMRC-recognised software to do so
• Submit quarterly updates to HMRC – not just an annual tax return
• Submit a final declaration at the end of the tax year

That’s it in plain terms. But those four points carry a lot of weight.

The Bit Most Tradespeople Are Missing

Even if you have a bookkeeper, accountant, or admin person who handles your finances – you still need to record your income and expenses digitally, as they happen.

This is the part that catches people off guard.

MTD isn’t just about how your tax is submitted. It’s about how your records are kept throughout the year. HMRC requires a digital trail – not a shoebox of receipts handed over in January.

So whether you’re doing it yourself, working with a bookkeeper, or going through your accountant – the digital recording piece sits with you. You have to do something.

What To Do Now

1. Check whether you meet the £50,000 threshold (it drops to £30,000 in 2027, and £20,000 in 2028)
2. Talk to your accountant, bookkeeper or admin team (if you have them) about how you’ll keep digital records – not just how your tax will be submitted. If you’re doing it yourself, get clued up on the everyday requirements
3. Make sure you’re using HMRC-recognised software before April 2026

MTD is happening. The good news is, if you’re already using Powered Now, you’re already ahead. If not, you’ve got plenty of time to take advantage of our 14-day free trial.

👉 Find out more about how Powered Now supports MTD compliance: powerednow.com/making-tax-digital/