From 6th April 2026, a major change is coming for sole traders and landlords across Greater Lincolnshire: if your self-employment or property income is over £50,000, you’ll be required to follow Making Tax Digital (MTD) for Income Tax.
What is Making Tax Digital (MTD) for Income Tax?
MTD for Income Tax means you’ll need to keep digital records and send income and expense updates to HMRC using compatible software, replacing traditional annual tax returns.
It’s designed to make tax reporting faster, easier and more accurate, but it does require getting used to a new way of working. Getting started early could save you time, stress, and last-minute surprises.
What does this mean for you?
If your income meets the threshold, you’ll no longer file one yearly return. Instead, you’ll send updates throughout the year using MTD-compatible software.
You don’t have to wait until 2026 to get started. From the 2025/26 tax year, HMRC is inviting businesses to sign up early and start using the system before it becomes mandatory. By registering ahead of time, you’ll be able to:
- Get familiar with the software
- Sort out any issues before the deadline
- Access support when you need it
Early users often find the process more manageable and are less likely to run into problems later on. It’s a smart move that puts you in control.
What you need to do:
- Register early for MTD for Income Tax to get ahead of the 2026 deadline
- Use HMRC’s software finder tool to choose a platform that suits your business
- Watch the recorded HMRC webinar to understand what’s involved and how to comply
- Test it out during 2025/26 to build confidence before it’s mandatory
Don’t leave it to the last minute. Acting now gives you the opportunity to work through the changes at your own pace, and with peace of mind. Sign up now on GOV.UK and start getting ready for the future of tax.
For businesses in Greater Lincolnshire, this is a crucial step to stay compliant and in control of your finances. If you’re unsure or need support, speak to your local business advisor.
HMRC are also conducting a survey to improve how Income Tax is reported, have your say here.
