From April 2026, Making Tax Digital for Income Tax for sole traders will become mandatory for those with qualifying income over £50,000. While some sole traders may not yet meet this threshold, starting early with a robust digital accounting system can save time, reduce errors, and make compliance seamless when the rules become compulsory.
This is where RentalBux comes in as a complete solution for sole traders managing self-employment income and property portfolios.
Understanding the Phased Rollout of MTD for Income Tax
The government has introduced Making Tax Digital for Income Tax for sole traders in phases:
- April 2026: Mandatory for sole traders with total qualifying income above £50,000
- April 2027: Expands to those with income above £30,000
- April 2028: Further threshold reduction to £20,000
Even if a sole trader is not yet legally required to comply, adopting digital record-keeping early ensures a smoother transition, accurate bookkeeping, and peace of mind.
Why Early Adoption Matters
Sole traders who wait until the mandate takes effect often struggle with:
- Setting up MTD-compatible software
- Reconciling multiple income streams, including property income
- Preparing quarterly submissions on time
- Avoiding costly mistakes in expense categorisation
By starting early, sole traders can familiarise themselves with digital processes and reduce the stress of quarterly reporting.
How RentalBux Simplifies MTD Compliance
RentalBux is designed specifically for sole traders and landlords, combining property management and accounting in one platform. Its features ensure you are ready for Making Tax Digital for Income Tax for sole traders well before the mandate:
- Automated accounting and bank feeds: Transactions are imported and categorised automatically, reducing manual work.
- Pre-built charts of accounts: Tailored for property and self-employment income, ensuring all records are HMRC-compliant.
- End-to-end property management: Manage tenants, rent collection, mortgages, and multiple ownership structures seamlessly.
- AI-powered automation: Auto-categorisation and OCR bill capture minimise errors and save time.
- MTD-ready submissions: Generate digital records that integrate with HMRC quarterly reporting requirements.
These features allow sole traders to maintain accurate records throughout the year, making the eventual MTD submissions straightforward and error-free.
Conclusion
While Making Tax Digital for Income Tax for sole traders becomes mandatory from April 2026 for those above the income threshold, early adoption of a digital accounting platform is a smart move for all sole traders. RentalBux offers a full suite of tools — from automated bookkeeping and AI categorisation to property management and pre-built charts of accounts — to ensure sole traders are fully prepared, compliant, and stress-free.