Making Tax Digital for Income Tax has moved beyond its pre-launch testing phase. The first mandatory stage began on 6 April 2026 for qualifying sole traders and landlords whose qualifying income for 2024/25 was more than £50,000.
Before the mandatory rollout, HMRC allowed eligible taxpayers and agents to join the system voluntarily so they could test compatible software, digital record keeping and quarterly updates. That testing helped businesses, accountants and HMRC prepare for the wider introduction of MTD for Income Tax.
Voluntary sign-up still has a role. Sole traders and landlords who are not yet required to use MTD for Income Tax may be able to sign up before their mandatory start date to prepare for the new system.
This article explains what the earlier MTD testing phase involved, what has changed since April 2026, and what sole traders and landlords should now consider.
For the current rules, deadlines and requirements, read our Making Tax Digital for Income Tax guide.
What Changed After MTD Beta Testing?
1. The Mandatory Rollout Has Started
Making Tax Digital for Income Tax is now being introduced in stages based on qualifying income.
- Qualifying income over £50,000 on the 2024/25 tax return → MTD for Income Tax started from 6 April 2026
- Qualifying income over £30,000 on the 2025/26 tax return → start from 6 April 2027
- Qualifying income over £20,000 on the 2026/27 tax return → start from 6 April 2028
Qualifying income broadly means total gross income from self-employment and property before expenses and tax.
People who are not yet required to use MTD for Income Tax may be able to sign up voluntarily before their mandatory start date.
2. Simplified Tax Management
Using cloud-based software allows for:
- Better organisation of records
- Automatic data entry from bank feeds
- Real-time tax estimates
Many businesses report that the move to digital accounting helps them make more informed financial decisions throughout the year.
Challenges of MTD Beta Testing
1. Voluntary Sign-Up Is Still Available
The pre-launch beta programme has changed now that MTD for Income Tax is live.
Sole traders and landlords who are not yet required to use MTD for Income Tax may still choose to sign up voluntarily before their mandatory start date. HMRC will check eligibility when someone signs up, and compatible MTD software is required.
Anyone considering voluntary sign-up should check the current HMRC eligibility rules rather than relying on the requirements that applied during the earlier testing period.
2. Extra Admin During Transition
Although MTD aims to reduce errors and improve efficiency long-term, in the short term it may create more admin:
- Learning new software
- Adjusting recordkeeping habits
- Managing both traditional and digital processes in parallel
For busy business owners, this dual workload can feel like a burden.
Tips for Getting Ready for MTD for Income Tax
- Choose MTD-compatible software early
See HMRC’s approved software list : HMRC Guideline for approved software
- Keep records up to date
Staying on top of your digital bookkeeping will reduce stress when quarterly updates are due.
- Get accounting support if you need it
If you are unsure about your MTD start date, digital records or compatible software, professional accounting support can help you understand the requirements that apply to your circumstances and prepare the appropriate records and processes.
How Accounting People Can Help
Accounting People can support sole traders and landlords with the practical accounting requirements involved in Making Tax Digital for Income Tax, including digital record keeping, compatible accounting software and ongoing accounting support.
If you are unsure when MTD for Income Tax applies to you, the first step is to establish your qualifying income and mandatory start date.
For dedicated support, visit our Making Tax Digital accountants page or speak to our team about preparing your accounting records for MTD.
Conclusion
MTD beta testing played an important role in preparing HMRC, software providers, accountants and taxpayers for the new system. However, MTD for Income Tax is no longer simply a future programme: the first mandatory stage began on 6 April 2026.
Further groups will enter the system from 6 April 2027 and 6 April 2028, while some people may choose to sign up voluntarily before they are required to do so.
The priority now is understanding when the rules apply to you and making sure your records and accounting software are ready.
