Making Tax Digital for UK Tradespeople: The April 2026 Guide

If you are a UK sole trader (electrician, plumber, builder, carpenter, roofer, painter, or any trade), the way you report income to HMRC is changing. From 6 April 2026, the first wave of self-employed people must use Making Tax Digital for Income Tax (MTD for Income Tax, also called MTD ITSA).

This guide explains, in plain terms, who is affected, when, what you actually have to do, and how to get ready without the stress. Every figure and date below is linked to an official GOV.UK source so you can verify it yourself.

This article is general information, not tax advice. Rules and figures can change. Always confirm your own position on GOV.UK or with an accountant.

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC's programme to move tax record keeping and reporting online. Instead of one annual Self Assessment return done from memory and a shoebox of receipts, you keep digital records and send HMRC regular digital updates using compatible software.

There are two parts that matter to tradespeople:

1. MTD for VAT which already applies to VAT-registered businesses.
2. MTD for Income Tax which starts rolling out for sole traders and landlords from April 2026.

MTD for Income Tax: the dates and thresholds

HMRC is phasing this in by income level. You are brought into MTD for Income Tax based on your qualifying income:

From	You must use MTD for Income Tax if qualifying income is over
6 April 2026	£50,000
6 April 2027	£30,000
6 April 2028	£20,000

These thresholds and start dates are set out by HMRC in Find out if and when you need to use Making Tax Digital for Income Tax and the reduction of the mandation threshold to £20,000 from April 2028.

HMRC has confirmed that around 864,000 sole traders and landlords are in scope for the first April 2026 phase. See HMRC's announcement, Act now: 864,000 sole traders and landlords face new tax rules.

What counts as "qualifying income"?

Qualifying income is your gross income from self-employment and property, before you take off any expenses or allowances. For most tradespeople that means total invoiced turnover from the trade (plus any rental income), not your profit. So a tradesperson turning over more than £50,000 a year is likely in scope from April 2026 even if profit after tools, van and materials is lower. HMRC explains how this is assessed in its step-by-step guidance.

What you will actually have to do

Once you are in MTD for Income Tax you must:

• Keep digital records of your business income and expenses (no more paper-only shoeboxes).
• Use MTD-compatible software to keep those records and talk to HMRC.
• Send quarterly updates to HMRC, summarising income and expenses for each quarter.
• Submit a final declaration after the tax year, which replaces the old Self Assessment tax return and confirms your figures and any other income.

HMRC sets out the full process in its Making Tax Digital for Income Tax step-by-step guide.

A softer first year

To help people adjust, HMRC has said that customers joining MTD for Income Tax in April 2026 will not get penalty points for late quarterly updates for the first 12 months. This is confirmed in HMRC's one year until Making Tax Digital for Income Tax launches announcement. It is a grace period, not a reason to ignore it: late or missing records still cause problems at year end.

Are any tradespeople exempt?

Some people can apply for an exemption, for example if it is not reasonable or practical for you to use digital tools (digital exclusion), or for certain other circumstances. Exemption is not automatic, you apply to HMRC. The criteria and how to apply are on GOV.UK in the eligibility guidance. If you are simply under the threshold, you do not need to do anything yet, but the threshold drops over time so most growing trades will be in scope eventually.

Do not forget MTD for VAT

If your business is VAT registered, MTD for VAT already applies: you must keep digital VAT records and file VAT returns using MTD-compatible software. If you are a VAT-registered tradesperson and still typing figures into the old portal, that is already out of step with the rules. HMRC's overview is in the Making Tax Digital collection and the wider Making Tax Digital technical note.

How tradespeople should get ready

You do not need to become a bookkeeper. You need three things in place before your start date:

1. Capture every invoice and receipt digitally as you go. The single biggest cause of stress at year end is missing records. Photograph receipts the day you get them. Raise invoices digitally so the numbers already exist.
2. Use software that keeps the records and submits to HMRC. "MTD-compatible" is the key phrase. Check any tool against HMRC's list before you rely on it.
3. Get into a quarterly rhythm now. Even before you are mandated, doing a light quarterly tidy-up makes the real thing a non-event.

Where Manano fits

Manano is built around exactly the habit MTD rewards: capturing the record at the moment the work happens, from your phone.

• Send a voice note or text on WhatsApp and Manano creates the invoice or quote as a proper digital record, instantly.
• Snap a photo of any receipt and Manano pulls out the date, amount and VAT and files it against the job.
• Ask for a report any time and get a tidy summary of income and expenses, ready for your accountant or accounting package at quarter end.

That means when MTD for Income Tax reaches you, the digital records already exist because you built them as part of doing the job, not as a separate chore. You stay on the tools, the paperwork stays current, and quarterly updates become a review rather than a scramble.

Get every invoice, quote and receipt captured digitally from day one. Start free on WhatsApp.

Sources and further reading

• Find out if and when you need to use Making Tax Digital for Income Tax (GOV.UK)
• Making Tax Digital for Income Tax for sole traders and landlords: step by step (GOV.UK)
• One year until Making Tax Digital for Income Tax launches (GOV.UK)
• Act now: 864,000 sole traders and landlords face new tax rules (GOV.UK)
• Reduction of the mandation threshold from £30,000 to £20,000 from April 2028 (GOV.UK)
• Making Tax Digital for Income Tax collection (GOV.UK)
• Technical note: Modernising the tax system through Making Tax Digital (GOV.UK)