Two months until Making Tax Digital – what taxpayers need to do now

6 February, 2026
Emma Rawson explains what to do now for Making Tax Digital
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With just two months to go until the first wave of taxpayers is brought in to Making Tax Digital for Income Tax, the Association of Taxation Technicians (ATT) is urging affected sole traders and landlords to take action now to ensure they are ready for the change.

The scheme will see those with income from trading and property required to keep digital records and submit quarterly updates to HMRC, along with an annual “MTD tax return”.

The new rules come into force in April 2026 for those with a total gross income (before expenses) of over £50,000 a year from April 2026, with lower income bands added in subsequent years. HMRC statistics reveal that 864,000 sole traders and landlords are expected to be in the first wave of taxpayers, rising to almost 3 million as lower income individuals are included by April 2028.

February and March are critical months for preparation. Those affected should:

  • Confirm whether they are in scope for Making Tax Digital
  • Investigate and choose compatible commercial software
  • Speak to their accountant or tax adviser as early as possible
  • Understand quarterly deadlines and record keeping requirements.

Leaving these steps until April risks errors, missed submissions and unnecessary stress, the Association has warned. It is encouraging anyone unsure about Making Tax Digital to seek advice from a qualified tax professional and to consult the guidance on its website.

Emma Rawson, ATT Director of Public Policy, said:

“Making Tax Digital is one of the biggest changes to the tax system in years, and it’s not something people should be trying to grapple with for the first time in April.

“February is the point at which preparation really matters. The message isn’t to panic, but to act now – check if you’re affected, get the right software in place, and seek advice early if you need it.”