Making Tax Digital: 864,000 to move to new digital system next week

30 March, 2026

Around 864,000 sole traders and landlords are expected to be brought into Making Tax Digital (MTD) for Income Tax from next week, fundamentally changing how they report their earnings to HMRC, says the Association of Taxation Technicians (ATT).

From 6 April, individuals with annual business or property income above £50,000 will be required to keep digital records and submit quarterly updates and tax returns using compatible software, marking one of the most significant changes to the tax system in recent years.

HMRC data1 indicates that this first wave represents a substantial population of taxpayers who will need to adapt to new reporting requirements, ahead of the regime being extended to those with lower incomes in future. Of the 864,000 nationwide, around 167,000 are from London, while more than a quarter of a million are in the construction sector.

Income tax raised £81.5 billion in the first two months of 2026 alone,2 with 42% (£34 billion) coming from Self-Assessment, but the ATT emphasises that not all of this revenue will fall within MTD. With just one week to go until MTD for Income Tax begins, the ATT is urging those affected to focus on whether they are within scope and to take practical steps to get ready.

Although the first quarterly filing deadline will not fall until August, taxpayers will need to start keeping digital records from April, making early preparation essential.3

The ATT is advising taxpayers to:

  • check whether their income brings them within the new rules 
  • ensure they have compatible software in place 
  • consider seeking professional advice where needed 

Emma Rawson, ATT Director of Public Policy, said:

“Making Tax Digital is one of the biggest changes to the tax system in years, and around 850,000 taxpayers will be in scope from the outset.

“While the wider tax system involves very large sums of money, it’s the number of individuals who will need to change how they keep records and report to HMRC that is most striking here.

“With just one week to go, now is the time to act. The first deadline may not be until August, but taxpayers need to start keeping digital records from April.

“It’s not too late to get ready – check if you’re affected, get the right software in place, and seek advice if you need it.”

Notes:

  1. Making Tax Digital industry and region management information
  2. HMRC tax receipts and National Insurance contributions for the UK (monthly bulletin)
  3. ATT’s Frequently Asked Questions on Making Tax Digital