The key date
From 6 April 2027, the MTD for Income Tax rules apply to people whose relevant qualifying income is over £30,000 under HMRC’s staged rollout. A further reduction to £20,000 follows from 6 April 2028 under the current timetable.
What you need in practice
You need compatible software, digital records and the ability to send the required quarterly updates. The year-end tax return process still needs to be finalised through compatible software.
Why preparing early helps
If records are still maintained mainly through paper, ad-hoc spreadsheets or a once-a-year bookkeeping exercise, MTD creates more disruption. Moving to a consistent digital process before the mandatory start date is usually easier than changing everything at once.
How Ledger Grove is set up
The sole trader service is digital by default. That makes MTD support a natural extension of the normal bookkeeping and tax workflow rather than a separate manual exercise.
This guide reflects HMRC information available in September 2026. Tax rules can change, so current HMRC guidance should always be checked for your start date and exemptions.