Plain-English Guide to Making Tax Digital for Income Tax

Making Tax Digital for Income Tax changes how sole traders and landlords do their tax from April 2026: digital records, a short update every three months, and a final declaration instead of the old annual return. This 22-page guide takes you from 'what even is this?' to knowing exactly what you have to do and when, in plain English, with worked examples and checklists throughout.

The 13 sections cover:

• Who's mandated and exactly when, across the £50,000 (April 2026), £30,000 (April 2027) and £20,000 (April 2028) waves
• What 'qualifying income' really means — your gross income, not your profit, with trading and rental income added together
• Exemptions, the digitally-excluded route, and what digital records legally require
• The quarterly cycle with real 2026/27 dates, and how cumulative updates work across a full worked year
• The final declaration, and a neutral comparison of bridging versus all-in-one software
• Penalties explained without scaremongering, plus a routine, FAQ, key dates and glossary

Every fact, date and rule was checked against HMRC's own published guidance on gov.uk, with sources listed inside so you can see the receipts, and the worked examples are checked to add up.

This is a guide, not software and not tax advice — it explains the rules and points you to the free and low-cost MTD-compatible software that does the actual submitting. Two print-ready PDFs are included, A4 and US Letter.